Edgar Filing: BLOCKBUSTER INC

Ownership Submission

FORM 4

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:

3235-0287

Expires:

January 31, 2005

Estimated average burden hours per response...

0.5

(Print or Type Responses)

1. Name and Address of Reporting Person ^*

WATTLES MARK J

2. Issuer Name and Ticker or Trading Symbol
BLOCKBUSTER INC [BBI]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

_____ Director	__X__ 10% Owner
_____ Officer (give title below)	_____ Other (specify below)

(Last)

(First)

(Middle)

7945 W. SAHARA AVE., SUITE 205

3. Date of Earliest Transaction (Month/Day/Year)
07/15/2010

(Street)

LAS VEGAS, NV 89117

4. If Amendment, Date Original Filed(Month/Day/Year)

6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person

(City)

(State)

(Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1.Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Class B Common Stock	07/15/2010		S		2,500	D	$ 0.078	11,074,500	I	See Notes ⁽¹⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		11,200	D	$ 0.0755	11,036,300	I	See Notes ⁽²⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		2,500	D	$ 0.0754	11,033,800	I	See Notes ⁽³⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		10,000	D	$ 0.0751	11,023,800	I	See Notes ⁽⁴⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		2,500	D	$ 0.0752	11,021,300	I	See Notes ⁽⁵⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		17,400	D	$ 0.075	11,003,900	I	See Notes ⁽⁶⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		15,000	D	$ 0.077	10,988,900	I	See Notes ⁽⁷⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		170,000	D	$ 0.079	10,818,900	I	See Notes ⁽⁸⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		18,900	D	$ 0.08	10,800,000	I	See Notes ⁽⁹⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		25,500	D	$ 0.0855	10,774,500	I	See Notes ⁽¹⁰⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		2,500	D	$ 0.0815	10,772,000	I	See Notes ⁽¹¹⁾ ⁽¹⁹⁾
Class B Common Stock	07/15/2010		S		2,500	D	$ 0.0805	10,769,500	I	See Notes ⁽¹²⁾ ⁽¹⁹⁾
Class B Common Stock	07/16/2010		S		25,000	D	$ 0.079	10,744,500	I	See Notes ⁽¹³⁾ ⁽¹⁹⁾
Class B Common Stock	07/16/2010		S		4,800	D	$ 0.0746	10,739,700	I	See Notes ⁽¹⁴⁾ ⁽¹⁹⁾
Class B Common Stock	07/16/2010		S		24,900	D	$ 0.076	10,714,800	I	See Notes ⁽¹⁵⁾ ⁽¹⁹⁾
Class B Common Stock	07/16/2010		S		2,500	D	$ 0.075	10,712,300	I	See Notes ⁽¹⁶⁾ ⁽¹⁹⁾
Class B Common Stock	07/16/2010		S		56,200	D	$ 0.0745	10,656,100	I	See Notes ⁽¹⁷⁾ ⁽¹⁹⁾
Class B Common Stock	07/16/2010		S		113,610	D	$ 0.07	10,542,490	I	See Notes ⁽¹⁸⁾ ⁽¹⁹⁾

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
	Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.		SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security
(Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code
(Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date
(Month/Day/Year)

7. Title and Amount of Underlying Securities
(Instr. 3 and 4)

8. Price of Derivative Security
(Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)

11. Nature of Indirect Beneficial Ownership
(Instr. 4)

Code

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
WATTLES MARK J 7945 W. SAHARA AVE., SUITE 205 LAS VEGAS, NV 89117		X
WATTLES CAPITAL MANAGEMENT, LLC 7945 W. SAHARA AVE., SUITE 205 LAS VEGAS, NV 89117		X

Signatures

Mark J. Wattles		07/19/2010
^**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Includes 7,662,750 shares held directly by WCM and 3,384,750 shares held directly by HKW Trust.
(2)	Includes 7,652,670 shares held directly by WCM and 3,383,630 shares held directly by HKW Trust.
(3)	Includes 7,650,420 shares held directly by WCM and 3,383,380 shares held directly by HKW Trust.
(4)	Includes 7,641,420 shares held directly by WCM and 3,382,380 shares held directly by HKW Trust.
(5)	Includes 7,639,170 shares held directly by WCM and 3,382,130 shares held directly by HKW Trust.
(6)	Includes 7,623,510 shares held directly by WCM and 3,380,390 shares held directly by HKW Trust.
(7)	Includes 7,610,010 shares held directly by WCM and 3,378,890 shares held directly by HKW Trust.
(8)	Includes 7,457,010 shares held directly by WCM and 3,361,890 shares held directly by HKW Trust.
(9)	Includes 7,440,000 shares held directly by WCM and 3,360,000 shares held directly by HKW Trust.
(10)	Includes 7,417,050 shares held directly by WCM and 3,357,450 shares held directly by HKW Trust.
(11)	Includes 7,414,800 shares held directly by WCM and 3,357,200 shares held directly by HKW Trust.
(12)	Includes 7,412,550 shares held directly by WCM and 3,356,950 shares held directly by HKW Trust.
(13)	Includes 7,390,050 shares held directly by WCM and 3,354,450 shares held directly by HKW Trust.
(14)	Includes 7,385,730 shares held directly by WCM and 3,353,970 shares held directly by HKW Trust.
(15)	Includes 7,363,320 shares held directly by WCM and 3,351,480 shares held directly by HKW Trust.
(16)	Includes 7,361,070 shares held directly by WCM and 3,351,230 shares held directly by HKW Trust.
(17)	Includes 7,310,490 shares held directly by WCM and 3,345,610 shares held directly by HKW Trust.
(18)	Includes 7,208,241 shares held directly by WCM and 3,334,249 shares held directly by HKW Trust.
(19)	Mr. Wattles owns 100% of the membership interests of WCM. Mr. Wattles is the settler and sole trustee of HKW Trust and exercises sole discretion over HKW Trust.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.