Netflix closing down their Red Envelope Entertainment division

Netflix closing down their Red Envelope Entertainment division

Movie-rental service Netflix has announced that they are now closing down their Red Envelope Entertainment division.

Red Envelope Entertainment was launched by the company to popularize independent movies. This unit acquired or financed indie movies to help them gain popularity in the mainstream market.

However, the company now believes that this initiative would put them in direct competition with Hollywood studios which are their partners in their core business of renting out movies.

Netflix said that the closure of this unit would not affect their business operations. Only around 4 people are going to lose their jobs.

This unit helped in movie projects including Sherrybaby, No End in Sight and ‘4 Months, 3 Weeks and 2 Days’.

Checkout: Red Envelope Entertainment