Netflix shuts movie financing arm to focus on core

NEW YORK - The movie-rental service Netflix Inc. is closing a small unit that finances independent movies, partly to avoid competing with Hollywood studios with which it partners for DVD and Internet distribution. The financial impact on the company will be small, and only four out of about 400 employees are losing their jobs. But the move could make it more difficult for smaller producers to find homes for their movies. Netflix' Red Envelope Entertainment had focused on bringing less-commercial projects to a broader audience. The unit acquired or helped finance independent films, distributing them in movie theaters as well as in the regular Netflix channels--DVD by mail and online streaming. Netflix spokesman Steve Swasey said the company began the unit as an experiment about two years ago, but ultimately decided that... [read full story]