8-K

                              UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C. 20549

                                FORM 8-K

                             CURRENT REPORT

                    Pursuant to Section 13 OR 15(d) of
                    The Securities Exchange Act of 1934

   Date of Report (Date of earliest event reported) March 19, 2007

                           MOVIE GALLERY, INC.
         (Exact name of registrant as specified in its charter)

         Delaware                  0-24548            63-1120122
(State or Other Jurisdiction     (Commission         (IRS Employer
     of Incorporation)           File Number)       Identification No.)

             900 West Main Street
               Dothan, Alabama                            36301
   (Address of principal executive offices)             (Zip Code)

           Registrant's telephone number, including area code
                           (334) 677-2108

      -------------------------------------------------------------
      (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities
     Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange
     Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under
     the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under
     the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01.  OTHER EVENTS

On March 19, 2007, the Company announced that it will launch an online
video rental service in mid-to-late 2007.  The Company also announced
that it is extending its movie kiosk program, which operates automated
movie vending machines.  A copy of the press release is attached hereto
as Exhibit 99.1 and is incorporated by reference in its entirety into
this Item 8.01.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

     99.1   Press Release dated March 19, 2007.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

MOVIE GALLERY, INC.
Date: March 19, 2007

/S/ Thomas D. Johnson, Jr.
- ------------------------------------
Thomas D. Johnson, Jr.
Executive Vice President and Chief
Financial Officer


INDEX TO EXHIBITS

99.1    Press Release dated March 19, 2007.

EX-99

   MOVIE GALLERY TO INTRODUCE ONLINE VIDEO RENTAL SERVICE AND
        EXTEND AUTOMATED VIDEO VENDING MACHINE PROGRAM

DOTHAN, Ala., March 19, 2007 -- Movie Gallery, Inc. (Nasdaq: MOVI)
today announced that it will launch an online video rental service
in mid-to-late 2007.  The pilot phase implementation will be a
low-cost "friends and family" program that will provide existing
customers with another easy way to rent movies.  The Company believes
that this new channel will complement its retail brick and mortar
business and enhance consumer convenience and satisfaction.

Movie Gallery also announced today that it is extending its movie
kiosk program, which operates automated movie vending machines in
supermarkets, malls and other high traffic areas.  The Company
currently has approximately 74 kiosk units in operation under the
Hollywood Video brand and plans to rollout approximately 200
additional units during the course of 2007.  The kiosk units provide
around the clock availability of movies with minimal overhead and
fixed costs.

"Together with our recently completed MovieBeam transaction, the
introduction of Movie Gallery's online video rental service and the
extension of our movie kiosk program demonstrate our commitment to
providing our customers with movies how they want them, when they
want them and where they want them," said Joe Malugen, Chairman,
President and Chief Executive Officer of Movie Gallery.  "While we
firmly believe that our retail brick and mortar stores will remain
the foundation of our business, over the past three years we have
been diligently pursuing alternative delivery platforms to further
complement our base business.  After considerable research and
testing, we believe that we can enter into the online space in a
cost-effective manner without spending significant resources on
advertising to acquire new customers.  Our goal is to increase
customer satisfaction and retention by providing consumers with the
benefits of greater choice and convenience."

About Movie Gallery

Movie Gallery is the second largest North American video rental
company with over 4,600 stores located in all 50 U.S. states and
Canada operating under the brands Movie Gallery, Hollywood Video
and Game Crazy.  The Game Crazy brand represents 633 in-store
departments and 17 free-standing stores serving the game market in
urban locations across the United States.  Since Movie Gallery's
initial public offering in August 1994, the Company has grown from
97 stores to its present size through acquisitions and new store
openings.  For more information about the Company, please visit our
website at: www.moviegallery.com.

Forward Looking Statements

To take advantage of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, you are hereby cautioned
that this release contains forward-looking statements, including
statements regarding the Company's plans and intentions for the
Company's online video rental service and plans regarding new
technologies, including kiosk units and MovieBeam, , that are based
upon the Company's current intent, estimates, expectations and
projections and involve a number of risks and uncertainties. Various
factors exist which may cause results to differ from these
expectations. These risks and uncertainties include, but are not
limited to, risks related to the integration of acquisitions
generally and the risk factors that are discussed from time to time
in the Company's SEC reports, including, but not limited to, the
Company's annual report on Form 10-K for the fiscal year ended
December 31, 2006. The Company undertakes no obligation to update
any forward-looking statements, whether as a result of new
information, future events, or otherwise.

Contacts

Analysts and Investors: Michelle K. Lewis, Movie Gallery, Inc.,
503-570-1950

Media: Andrew B. Siegel of Joele Frank, Wilkinson Brimmer Katcher,
212-355-4449 ext. 127