Today in Indie Carnage: Netflix Executes Red Envelope Entertainment

The independent-film slaughterhouse revved back into action this morning with news that Red Envelope Entertainment, the acquisitions and financing division of Netflix, shut its doors after three years. The division helped underwrite and/or release titles including the Maggie Gyllenhaal drama Sherrybaby, the Oscar-nominated documentary No End in Sight and Julie Delpy’s directorial debut Two Days in Paris; it’s last film appears to be the psychosexual Ben Kingsley/Penelope Cruz drama Elegy, opening next month.
Red Envelope boss Liesl Copland appears to be on her way out as well, marking roughly the 674th job lost in the indie sector in 2008. RIP, of course — but what does it all mean? And when, when will the carnage end?

REE had partnered with distributors like IFC Films and Samuel Goldwyn since 2005, at one point splitting acquisition and theatrical distribution costs in exchange for DVD rights and half the profits. As noted today in The Hollywood Reporter, that all changed this past January when Red Envelope pared back its operation; its closure Tuesday wipes out yet another player in the indie market following the dissolution of Picturehouse, Warner Independent and Tartan Films, with ThinkFilm, The Weinstein Company and Sidney Kimmel Entertainment on life-support close behind.

Bleak, huh? On the bright side, at least Paramount purports to still be in the game despite its overt genrefication last week. Take your silver linings — and your résumés, we suppose — where you can find them.

• Netflix closing Red Envelope [THR]
• Netflix Shutting Red Envelope Entertainment [indieWIRE]