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 *
VIACOM INC
  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)
1515 BROADWAY, 
3. Date of Earliest Transaction (Month/Day/Year)
10/05/2004
(Street)

NEW YORK, NY 10036
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 10/05/2004   C   72,000,000 A $ 0 72,000,000 D (1)  
Class B Common Stock               72,000,000 D (1)  

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
Class B Common Stock (1) $ 0 10/05/2004   C     72,000,000   (1)   (1) Class A Common Stock 72,000,000 $ 0 0 D (1)  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
VIACOM INC
1515 BROADWAY
NEW YORK, NY 10036
    X    
NAIRI INC
200 ELM STREET
DEDHAM, MA 02026
    X    
NATIONAL AMUSEMENTS INC /MD/
200 ELM STREET
DEDHAM, MA 02026
    X    
REDSTONE SUMNER M
C/O VIACOM INC.
1515 BROADWAY
NEW YORK, NY 10036
  X   X    
VIACOM INTERNATIONAL INC /DE/
1515 BROADWAY
NEW YORK, NY 10036
    X    

Signatures

 By: Michael D. Fricklas, Executive Vice President   10/07/2004
**Signature of Reporting Person Date

 By: Sumner M. Redstone, Chairman & President   10/07/2004
**Signature of Reporting Person Date

 By: Sumner M. Redstone, Chairman & CEO   10/07/2004
**Signature of Reporting Person Date

 By: Sumner M. Redstone   10/07/2004
**Signature of Reporting Person Date

 By: Michael D. Fricklas, Executive Vice President   10/07/2004
**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 1, 2004, joint reporting person Viacom International Inc. transferred 144 million shares of Blockbuster Inc. Class B common stock (the Class B Stock) to its sole stockholder and joint reporting person, Viacom Inc. (Viacom). On October 5, 2004, Viacom converted 72 million shares of the Class B Stock on a one-for-one basis into 72 million shares of Blockbuster Class A common stock. The 72 million shares of Class B Stock remaining after the conversion described in the preceding sentence are no longer convertible and are now reflected on Table I of this report. These securities are owned directly by Viacom, but may also be deemed to be beneficially owned by (1) NAIRI, Inc. (NAIRI), which owns approximately 71% of Viacom's voting stock, (2) NAIRI's parent corporation, National Amusements, Inc. (NAI) and (3) Sumner M. Redstone, who is the controlling stockholder of NAI.

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