Mine never smells like that, usually a clean seafood smell, if I noticed it at all. Bet the batch is rotten. I rinse mine prior to feeding, too, maybe that's why I don't notice a film on the water, either.
Better return it to where you've bought it for a refund. Can't be good.
Don't feed it to your fish, lest they get sick from it. If they even touch it at all.
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