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

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3235-0287

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(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)
07/19/2010

(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	07/19/2010		S		52,500	D	$ 0.0611	10,489,990	I	See Notes ⁽¹⁾ ⁽¹⁸⁾
Class B Common Stock	07/19/2010		S		55,000	D	$ 0.062	10,434,990	I	See Notes ⁽²⁾ ⁽¹⁸⁾
Class B Common Stock	07/19/2010		S		17,500	D	$ 0.066	10,417,490	I	See Notes ⁽³⁾ ⁽¹⁸⁾
Class B Common Stock	07/20/2010		S		100,000	D	$ 0.0635	10,317,490	I	See Notes ⁽⁴⁾ ⁽¹⁸⁾
Class B Common Stock	07/20/2010		S		100,000	D	$ 0.063	10,217,490	I	See Notes ⁽⁵⁾ ⁽¹⁸⁾
Class B Common Stock	07/20/2010		S		6,200	D	$ 0.066	10,211,290	I	See Notes ⁽⁶⁾ ⁽¹⁸⁾
Class B Common Stock	07/20/2010		S		35,000	D	$ 0.064	10,176,290	I	See Notes ⁽⁷⁾ ⁽¹⁸⁾
Class B Common Stock	07/20/2010		S		102,422	D	$ 0.0645	10,073,868	I	See Notes ⁽⁸⁾ ⁽¹⁸⁾
Class B Common Stock	07/20/2010		S		10,000	D	$ 0.062	10,063,868	I	See Notes ⁽⁹⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		44,000	D	$ 0.063	10,019,868	I	See Notes ⁽¹⁰⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		330,000	D	$ 0.064	9,689,868	I	See Notes ⁽¹¹⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		126,000	D	$ 0.066	9,563,868	I	See Notes ⁽¹²⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		40,000	D	$ 0.077	9,523,868	I	See Notes ⁽¹³⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		30,000	D	$ 0.075	9,493,868	I	See Notes ⁽¹⁴⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		25,000	D	$ 0.072	9,468,868	I	See Notes ⁽¹⁵⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		80,000	D	$ 0.071	9,388,868	I	See Notes ⁽¹⁶⁾ ⁽¹⁸⁾
Class B Common Stock	07/21/2010		S		39,000	D	$ 0.07	9,349,868	I	See Notes ⁽¹⁷⁾ ⁽¹⁸⁾

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		07/21/2010
^**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 7,160,991 shares held directly by WCM and 3,328,999 shares held directly by HKW Trust.
(2)	Includes 7,111,491 shares held directly by WCM and 3,323,499 shares held directly by HKW Trust.
(3)	Includes 7,095,741 shares held directly by WCM and 3,321,749 shares held directly by HKW Trust.
(4)	Includes 7,005,741 shares held directly by WCM and 3,311,749 shares held directly by HKW Trust.
(5)	Includes 6,915,741 shares held directly by WCM and 3,301,749 shares held directly by HKW Trust.
(6)	Includes 6,910,161 shares held directly by WCM and 3,301,129 shares held directly by HKW Trust.
(7)	Includes 6,878,661shares held directly by WCM and 3,297,629 shares held directly by HKW Trust.
(8)	Includes 6,786,481shares held directly by WCM and 3,287,387 shares held directly by HKW Trust.
(9)	Includes 6,777,481 shares held directly by WCM and 3,286,387 shares held directly by HKW Trust.
(10)	Includes 6,737,881 shares held directly by WCM and 3,281,987 shares held directly by HKW Trust.
(11)	Includes 6,440,881shares held directly by WCM and 3,248,987 shares held directly by HKW Trust.
(12)	Includes 6,327,481 shares held directly by WCM and 3,236,387 shares held directly by HKW Trust.
(13)	Includes 6,291,481 shares held directly by WCM and 3,232,387 shares held directly by HKW Trust.
(14)	Includes 6,264,481shares held directly by WCM and 3,229,387 shares held directly by HKW Trust.
(15)	Includes 6,241,981 shares held directly by WCM and 3,226,887 shares held directly by HKW Trust.
(16)	Includes 6,169,981 shares held directly by WCM and 3,218,887 shares held directly by HKW Trust.
(17)	Includes 6,134,881 shares held directly by WCM and 3,214,987 shares held directly by HKW Trust.
(18)	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.

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