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Blockbuster Inc., the nation’s biggest movie rental company, plans to eliminate late fees on games and movies as of Jan. 1. Blockbuster announced Tuesday it will continue to set due dates, with one week for games and two days or one week for movies. But the company will give customers a one-week grace period at no additional charge, starting on New Year’s Day.

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I think this is great news for those of you out there that still rent movies. Blockbuster makes a killing on late fees. The movie rental itself is about $4. But that charge quickly skyrockets to around $8 for movies a day late. I guess they’re trying to lure TiVo customers back to the counter.