Netflix is shutting down a unit (Red Envelope Entertainment) that invested in low-budget films and documentaries intended to appeal to Netflix customers, according to Bloomberg.
…Red Envelope employed four people and “a few folks will be moving on,” spokesman Steve Swasey said. Los Gatos, California- based Netflix is the world’s largest Web-based video-rental store, with 8.2 million subscribers.
The division was set up to let Netflix seed the market for films aimed at niche audiences, Chief Executive Officer Reed Hastings said in a 2006 interview. With the closing, the company will rely more on rental histories to help customers find lesser-known pictures they might enjoy.— Bloomberg | Read The Full Article