Movie with marionettes puppets that fight for the stage

I watched this movie about 10 years ago in my 3rd grade music class. It was a movie with string puppet where the jester and this other puppet fought for time on the stage in front of the people. The puppet master would choose his favorite and allow them to preforme. When the puppet master wasn’t looking the jester would bully the other puppet. The last scene was of the jester becoming jealous and stabbing the other puppet. When the puppet was stabbed he began to bled red rubies and gold.

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