Well, from my perspective it is a great tie in with the theater biz, which isn't enough to support my wife and I and our elaborate lifestyle
We do DVDs only and have them behind the concession stand/ticket counter. Late fees are a drag no matter how you slice it. However, we have elected to do a bonus if you get it in early, as well. We give them a $1 credit on their account if they get back the movie before we open the next day. It seems to be working, but I'm sure I'll have some stories as time goes by. We haven't even had it open a week yet, so we're just learning this as we go.