From IMDB.com:
Blockbuster Ends Late Fees
Tacitly admitting that one of the greatest attractions posed by its online rivals is that they permit customers to rent movies for an unlimited time, Blockbuster announced Tuesday that it is eliminating late fees -- sort of. The movie rental company will continue to set due dates for the return of videos, but customers will be allowed a one-week grace period. After that period expires, the entire price of the video will be charged to the customer's credit card at the lowest price offered in the store. Even then, the customer will be able to return the video and have the charge removed less a $1.25 "restocking" fee. In related Blockbuster news, Billionaire investor Carl Icahn has increased his stake in Hollywood Entertainment Corp, parent of the Hollywood Video chain, to nearly 10 percent of the company. He also holds an undisclosed number of shares in Blockbuster and is pushing for a merger of the two companies. In an SEC filing, Icahn said, "Because of the synergies that would be involved in a combination of Blockbuster and [Hollywood], Blockbuster would be in a position to offer the greatest amount of consideration to [Hollywood's] shareholders." But media analyst Dennis McAlpine told Video Store magazine that he doubted regulators would allow a Blockbuster/Hollywood merger to go forward. "The interest in the industry would pretty much dry up because there would be no competition," McAlpine said. "As much as Blockbuster has said all these wonderful things [about a merger with Hollywood], they are the same things I would say if I thought I had a problem [with federal regulators]. And I think they do."
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