Netflix to Distribute Indie Film

Netflix is set to enter the movie distribution business, beginning with the independent film "Sherrybaby." Through its newly created Red Envelope Entertainment division, Netflix would own the theatrical, DVD, television and download rights to the movie within North America.

"Sherrybaby" stars Maggie Gyllenhaal and received a lot of attention at this year's Sundance Film Festival. Gyllenhaal plays a woman struggling to keep her life on track, and follows her release from prison and struggle to maintain custody of her child.

IFC Films has signed a deal to give Netflix all necessary rights. The film will debut in theaters on August 25, with availability from netflix.com beginning November 7.

"Partnering with Netflix to access its network and resources will make a tremendous difference in the number of people who will see "Sherrybaby" in the U.S.," said Marc Turtletaub, principal at Big Beach Films. "Utilizing alternative means of film distribution is important to filmmakers like Big Beach since we have an opportunity to stretch our creativity and make films that matter and will be seen."

The company says its new venture would help it to offer consumers a wider variety of films that it may not have otherwise seen. Additionally, Netflix's distribution methods offer a way to give less commercial projects more visibility.

Netflix is confident that its first venture into distribution will do well. "'Sherrybaby' is a powerful story of redemption that we believe will have great consumer appeal," said Ted Sarandos, the company's chief content officer.