After two years, Netflix is shuttering Red Envelope Entertainment, a division tasked with funding, acquiring and distributing indie films under its own label.

According to the AP and Variety, the reasons for the closure are that film financing is not their forte and they don't want to compete with their Hollywood partners for the same films, efforts that are distracting them from their real competitors such as VOD companies and Blockbuster.

The employees affected by the closure are being considered for positions elsewhere in the company.