SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
X	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* WATTLES MARK J (Last) (First) (Middle) 7945 W. SAHARA AVE., SUITE 205 (Street) LAS VEGAS NV 89117 (City) (State) (Zip)	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)
	3. Date of Earliest Transaction (Month/Day/Year) 07/22/2010
	4. If Amendment, Date of 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

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 B Common Stock	07/22/2010		S		5,000	D	$0.071	9,344,868	I	See Notes(1)(23)
Class B Common Stock	07/22/2010		S		25,000	D	$0.07	9,319,868	I	See Notes(2)(23)
Class B Common Stock	07/22/2010		S		177,360	D	$0.074	9,142,508	I	See Notes(3)(23)
Class B Common Stock	07/22/2010		S		30,000	D	$0.0761	9,112,508	I	See Notes(4)(23)
Class B Common Stock	07/22/2010		S		5,000	D	$0.0815	9,107,508	I	See Notes(5)(23)
Class B Common Stock	07/22/2010		S		10,000	D	$0.081	9,097,508	I	See Notes(6)(23)
Class B Common Stock	07/22/2010		S		50,000	D	$0.0781	9,047,508	I	See Notes(7)(23)
Class B Common Stock	07/22/2010		S		5,000	D	$0.0785	9,042,508	I	See Notes(8)(23)
Class B Common Stock	07/22/2010		S		266,000	D	$0.08	8,776,508	I	See Notes(9)(23)
Class B Common Stock	07/23/2010		S		25,000	D	$0.0815	8,751,508	I	See Notes(10)(23)
Class B Common Stock	07/23/2010		S		2,952	D	$0.085	8,748,556	I	See Notes(11)(23)
Class B Common Stock	07/23/2010		S		280,000	D	$0.089	8,468,556	I	See Notes(12)(23)
Class B Common Stock	07/23/2010		S		313,300	D	$0.084	8,155,256	I	See Notes(13)(23)
Class B Common Stock	07/23/2010		S		53,058	D	$0.081	8,102,198	I	See Notes(14)(23)
Class B Common Stock	07/23/2010		S		147,942	D	$0.083	7,954,256	I	See Notes(15)(23)
Class B Common Stock	07/23/2010		S		286,748	D	$0.08	7,667,508	I	See Notes(16)(23)
Class B Common Stock	07/23/2010		S		141,000	D	$0.079	7,526,508	I	See Notes(17)(23)
Class B Common Stock	07/26/2010		S		25,000	D	$0.095	7,501,508	I	See Notes(18)(23)
Class B Common Stock	07/26/2010		S		63,300	D	$0.091	7,438,208	I	See Notes(19)(23)
Class B Common Stock	07/26/2010		S		203,366	D	$0.092	7,234,842	I	See Notes(20)(23)
Class B Common Stock	07/26/2010		S		100,000	D	$0.0955	7,134,842	I	See Notes(21)(23)
Class B Common Stock	07/26/2010		S		108,334	D	$0.093	7,026,508	I	See Notes(22)(23)

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 Securities Underlying Derivative Security (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: 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

1. Name and Address of Reporting Person* WATTLES MARK J (Last) (First) (Middle) 7945 W. SAHARA AVE., SUITE 205 (Street) LAS VEGAS NV 89117 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

1. Name and Address of Reporting Person* WATTLES CAPITAL MANAGEMENT, LLC (Last) (First) (Middle) 7945 W. SAHARA AVE., SUITE 205 (Street) LAS VEGAS NV 89117 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

Explanation of Responses:

1. Includes 6,130,381 shares held directly by WCM and 3,214,487 shares held directly by HKW Trust.

2. Includes 6,107,881 shares held directly by WCM and 3,211,987 shares held directly by HKW Trust.

3. Includes 5,948,257 shares held directly by WCM and 3,194,251 shares held directly by HKW Trust.

4. Includes 5,921,257 shares held directly by WCM and 3,191,251 shares held directly by HKW Trust.

5. Includes 5,916,757 shares held directly by WCM and 3,190,751 shares held directly by HKW Trust.

6. Includes 5,907,757 shares held directly by WCM and 3,189,751 shares held directly by HKW Trust.

7. Includes 5,862,757 shares held directly by WCM and 3,184,751 shares held directly by HKW Trust.

8. Includes 5,858,257 shares held directly by WCM and 3,184,251 shares held directly by HKW Trust.

9. Includes 5,618,857 shares held directly by WCM and 3,157,651 shares held directly by HKW Trust.

10. Includes 5,596,357 shares held directly by WCM and 3,155,151 shares held directly by HKW Trust.

11. Includes 5,593,700 shares held directly by WCM and 3,154,856 shares held directly by HKW Trust.

12. Includes 5,341,700 shares held directly by WCM and 3,126,856 shares held directly by HKW Trust.

13. Includes 5,059,730 shares held directly by WCM and 3,095,526 shares held directly by HKW Trust.

14. Includes 5,011,978 shares held directly by WCM and 3,090,220 shares held directly by HKW Trust.

15. Includes 4,878,830 shares held directly by WCM and 3,075,426 shares held directly by HKW Trust.

16. Includes 4,620,757 shares held directly by WCM and 3,046,751 shares held directly by HKW Trust.

17. Includes 4,493,857 shares held directly by WCM and 3,032,651 shares held directly by HKW Trust.

18. Includes 4,478,506 shares held directly by WCM and 3,023,002 shares held directly by HKW Trust.

19. Includes 4,439,639 shares held directly by WCM and 2,998,569 shares held directly by HKW Trust.

20. Includes 4,314,767 shares held directly by WCM and 2,920,075 shares held directly by HKW Trust.

21. Includes 4,253,842 shares held directly by WCM and 2,881,477 shares held directly by HKW Trust.

22. Includes 4,186,845 shares held directly by WCM and 2,839,663 shares held directly by HKW Trust.

23. 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.

Remarks:

	Mark J. Wattles	07/26/2010
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* 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).
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