Los Gatos, Calif. - Online DVD rental service Netflix (NASD: NFLX) is closing its Red Envelope Entertainment unit, which helped finance various feature and documentary productions, the Los Angeles Times reported.

The company reportedly cited as its reason the fact that Red Envelope is in competition with its Hollywood studio partners.

Red Envelope employed around 50 people, and had invested in over 100 films, including Oscar-winning documentary "Born Into Brothels" and "This Film Is Not Yet Rated."

Related Links:
http://www.latimes.com/business/la-fi-briefs22-2008jul22,0,4065421.story

http://www.netflix.com

http://www.imdb.com/company/co0187965 (Red Envelope)