NEW YORK (Hollywood Reporter) - In a move that could have a big impact on indie film sales and distribution, online film rental service Netflix is shuttering its film financing and acquisition arm Red Envelope Entertainment.

Since it was founded two years ago, Red Envelope invested in more than 100 films and partnered on key acquisitions for small distributors. Some of its acquisitions include the war documentary "No End in Sight" with Magnolia Pictures, and the romantic comedy "Two Days in Paris" with Samuel Goldwyn Pictures.

According to a Los Angeles Times report, Netflix said it shuttered Red Envelope because the division competed withy Netflix's Hollywood studio partners. Red Envelope employed about 50 people.

Reuters/Hollywood Reporter