Movie Gallery (MOVI) disagrees with Blockbuster (BBI) about industry trends (quotes from conf call)
Below are some comments from Movie Gallery (ticker: MOVI) from its May 12, 2005 conference call with investors.
On comments from Blockbuster's (ticker: BBI) CEO, John Antioco, portraying the movie rental business as an industry in decline:
..we would have to take a position somewhat contrary to what Mr. Antioco had to say….we have not seen the types of things that he has been describing, and we do have a number of stores across the street from Blockbuster.
…I believe that the results sort of speak for themselves. I have said many times… any time you make material changes of what's going on inside that store box, you take the risk that you will have good things happen and you also take the risk that bad things will happen. I think Movie Gallery and Hollywood over the past three or four years, tried to maintain a very consistent box, a very consistent product mix, and while the big challenge for any management team is dealing with the changes that occur in your industry and…. we simply have not seen some of the things that Mr. Antioco talks about.
…when you look at the business….
...your task as management is to change with the times but not to change so dramatically that you alienate your customer.
(Quotes from the CCBN StreetEvents transcript.)
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