Last night, I started getting emails regarding Netflix’s decision to shutter their Red Envelope Entertainment division, which invested in co-productions, partnered with larger distributors such as Magnolia and IFC to give their acquisitions a boost, and acquired indie films for theatrical distribution on their own. Over 100 films were released under Rev Envelope since it sprung up in 2005, including a number of press darlings and minor hits such as 2 Days in Paris and The Puffy Chair. Hacking Netflix reported last night that Netflix would only be letting 4 employees go in the course of Red Envelope’s dissolution; this morning, indieWIRE pegged the number at 5, which was the entire division, including executive Liesl Copeland.
The problem seems to be that Red Envelope forced Netflix to essentially compete against the Hollywood studios, indie arms and legit indies who supply the bulk of their content. Netflix will now focus its energy on moving content from those sources into digital distribution pipelines. Which will be awesome, once they finally broker a deal with Apple so that you and I can watch their G-D movies on our MacBooks and iPhones…
Meanwhile, a related (if inverse) story broke at roughly the same time, concerning IndiePix. …Read more
As if to teach me a lesson for questioning their commitment to the distribution of indie film, Netflix’s Red Envelope Entertainment inked a deal this week to distribute Running with Arnold, a documentary on Arnold Schwarzeneggar’s rise from Mr. Universe (yes, seriously) to governor of California. The film premiered at SXSW, and recently won a documentary prize at the Zurich Film Festival.
About a year ago, Alec Baldwin, who narrates the film, caused a bit of a dust-up with a dramatic entry on the Huffington Post, in which he claimed he was pursuing legal action to have his name and voice removed from the final cut. Baldwin claimed that he didn’t have time to screen the film before recording his narration, and when he finally did see it, he felt that some of director Dan Cox’s visual choices (such as archive footage of Nazi rallies used to hammer home a point about the Governator’s quest for power) went “over the line.” By the time the film premiered at SXSW in March 2007, that conflict had been resolved. As producer Mike Gabrawy told me during that festival, “The cease-and-desist was absolutely off base. They had no grounds.”
Paul interviewed Dan Cox about Running With Arnold at SXSW; you can check that out here.