Movie Gallery (MOVI) discusses the impact of Blockbuster's (BBI) 'No Late Fees' campaign and a subscription based business model (quotes from conf call)

Below are some comments from Movie Gallery's (ticker: MOVI) from its March 18, 2005 conference call with investors.

On the impact from Blockbuster’s (ticker: BBI) ‘No Late Fees’ campaign:

…we haven't seen any impact from Blockbuster's "No Late Fee" program except to the extent…that our business has been pretty good since they started this... from what I've been reading, I believe that they have unfortunately had as much negative from the program as they have had positive so we have no intentions of going to that program.

On switching to an in-store subscription model:

...it's my belief that it's a relatively small percentage of your customers that would have an interest in it, probably 10 percent at the most…It's not that we're against an in-store subscription model…I'm not that excited about it, nor do I think that it's going to be something that a large percentage of our customers would want.
We do have…something that's very similar…. our prepaid rental card that we've had for many years. You know the object of both is to build goodwill with your customers, customer loyalty, that sort of thing…it's my belief that our prepaid rental card is actually a little more flexible for our customer and achieves the same sort of discounting that a subscription would do. So we think, frankly, we've got a little better mouse trap than a typical subscription.

(Quotes from the CCBN StreetEvents transcript.)