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 *
ANTIOCO JOHN F
   2. Issuer Name and Ticker or Trading Symbol
BLOCKBUSTER INC [BBI] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chairman of the Board and CEO
(Last)
(First)
(Middle)
1201 ELM ST.		 3. Date of Earliest Transaction (Month/Day/Year)
07/02/2007
(Street)

DALLAS, TX 75270		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ 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 and Class B Common Stock 07/02/2007   M   1,728,972 A (1) 1,728,972 D  
Class A and Class B Common Stock 07/02/2007   D   1,728,972 D (1) 0 D  

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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
Restricted Share Units (1) 07/02/2007   M     1,728,972 07/02/2007 07/02/2007 Class A and Class B Common Stock (1) 1,728,972 (1) 0 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
ANTIOCO JOHN F
1201 ELM ST.
DALLAS, TX 75270		   X     Chairman of the Board and CEO  

Signatures

 Mary Bell, as attorney-in-fact for John F. Antioco   07/03/2007
**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) On October 21, 2004, the Reporting Person was awarded 1,728,972 restricted share units pursuant to his employment agreement. Each restricted share unit entitles the Reporting Person to receive a cash payment equal in value to the average of the closing prices of a share of Blockbuster Class A and Class B Common Stock on the date of his termination of employment, which occurred on July 2, 2007. Although SEC reporting requirements require that the settlement of restricted share units in cash be reported as an acquisition and subsequent disposition of the shares underlying the restricted share units (each as exempt transactions), under the terms of the award Mr. Antioco did not receive or dispose of shares of the Issuer's Class A or Class B Common Stock, but rather received a cash payment for 864,486 restricted share units on July 2, 2007 and will receive a cash payment for the remaining 864,486 restricted share units on Jan. 2, 2008 pursuant to the requirements of Sec. 409A of the IRC.

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