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Through its division Red Envelope Entertainment , Netflix licensed and distributed independent films such as Born into Brothels and Sherrybaby. A notable exception was China , citing the barriers of operating Internet and media services in the country due to its regulatory climate. Since that time see Technical details of Netflix , the company has built its reputation on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per-title rental fees.
As of late , Red Envelope Entertainment also expanded into producing original content with filmmakers such as John Waters. Reed Hastings stated that the company was planning to build relationships with local media companies that could serve as partners for distributing its content in the country with a goal to concentrate primarily on its original content , but stated that they were in no hurry, and could thus take "many years". Subscription growth has been fueled by its global expansion.
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