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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(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)
07/08/2010
(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)
Code V Amount (A) or (D) Price
Class A Common Stock               6,200,000 I See Notes (1) (8)
Class B Common Stock 07/08/2010   S   200,000 D $ 0.082 11,350,000 I See Notes (2) (8)
Class B Common Stock 07/08/2010   S   30,000 D $ 0.08 11,320,000 I See Notes (3) (8)
Class B Common Stock 07/08/2010   S   20,000 D $ 0.084 11,300,000 I See Notes (4) (8)
Class B Common Stock 07/09/2010   S   10,000 D $ 0.09 11,290,000 I See Notes (5) (8)
Class B Common Stock 07/09/2010   S   5,000 D $ 0.0875 11,285,000 I See Notes (6) (8)
Class B Common Stock 07/09/2010   S   235,000 D $ 0.085 11,050,000 I See Notes (7) (8)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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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 V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address Relationships
 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   07/12/2010
**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 6,000,000 shares held directly by Wattles Capital Management, LLC ("WCM") and 200,000 shares held directly by HKW Trust.
(2) Includes 7,935,000 shares held directly by WCM and 3,415,000 shares held directly by HKW Trust.
(3) Includes 7,908,000 shares held directly by WCM and 3,412,000 shares held directly by HKW Trust.
(4) Includes 7,890,000 shares held directly by WCM and 3,410,000 shares held directly by HKW Trust.
(5) Includes 7,881,000 shares held directly by WCM and 3,409,000 shares held directly by HKW Trust.
(6) Includes 7,876,500 shares held directly by WCM and 3,408,500 shares held directly by HKW Trust.
(7) Includes 7,665,000 shares held directly by WCM and 3,385,000 shares held directly by HKW Trust.
(8) 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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