By 2004, it became apparent that the future of film viewing was a world of instant streaming, torrents, and depraved pornography. In short: The Internet was here, and it had no use for the video store.
Netflix afforded its customers a few perks over the traditional brick-and-mortar store: more selection (sure, it was mostly obscure '90s direct-to-video action flicks, but there were still technically more of them), instant access, lower prices, and best of all, no late fees! Blockbuster understood the appeal and decided to abolish their long-hated "late fees" for good. This, they hoped, would finally get people excited to visit Blockbuster and its inexplicably sticky carpets again.
Unfortunately for anyone who decided to take Blockbuster up on this offer, they didn't so much "abolish" late fees as "rename" them while "significantly increasing" them. Anyone who kept their movie longer than a week after the due date noticed that costly unauthorized charges were being made to their credit card, because Blockbuster had charged them a "restocking fee," which just happened to be the full cost of the movie.
So like two bucks, right?