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Netflix, the online film rental juggernaut, is adhering to its name: Getting out of the theatrical business altogether, abandoning film production, and focusing solely on Internet and new media distribution platforms. With the move, the company has folded its nearly 3-year-old division Red Envelope Entertainment (REE), which purchased all-rights to indie films, and will be letting go its 5-person staff, which includes veteran exec, Liesl Copland, head of Red Envelope Entertainment.

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