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Netflix closing Red Envelope


July 22, 2008 In a move that could have a big impact on indie film sales and distribution, online film rental service Netflix is shuttering its film financing and acquisition arm Red Envelope Entertainment. Until this January, the division typically put up half of a film's total acquisition and theatrical release costs in return for Netflix disc and digital streaming rights and half the total profits. In January, REE changed its general approach to pay a flat fee for DVD rights and nonexclusive Netflix online rental streaming, done day-and-date with the retail DVD release, typically taking less risk for less money.

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