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Netflix Backs Off Original Content Investment; Closes Red Envelope Unit

This story was written by Staci D. Kramer.


This falls into the Casablanca category as in the police captain being "shocked" to find gambling going on at Rick's ... Netflix (NSDQ: NFLX) is closing its nascent Red Envelope Entertainment unit because it competes with the studios it relies on for its main business. Red Envelope invested in more than 100 films and had about 50 employees, according to the LA Times


By Staci D. Kramer

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