VGTel Inc (OTCMKTS:VGTL) said that its subsidiary Motion Picture Scanning Services, Inc. entered into a cooperation deal with New York City film studio and Domicile NYC. The second company will act as MPSS’ sales agent for the NY metropolitan region to promote and offer MPSS’ film scanning services. It will be done together with the post-production service that as of now is offered by Domicile.
The cooperation deal with Domicile is a planned measure for VGTel’s subsidiary as the company lately extended its film scanning services to the 35mm film format from 65mm Giant Screen films. The newly used format is in fact the most common format used for television programming and feature films.
The management view
James Humann, the COO of MPSS, said that the entertainment industry is devoted to the rapid growth of 4K platform and the management believes UltraHD will soon become the next standard for television. As per the deal, VGTel subsidiary will offer value-added services to content owners and producers by synergizing the film scanning operations with Domicile’s extensive experiences in post-production. MPSS believe the partnership will further boost company’s growth.
There are several TV manufacturers including Samsung, LG, Sony Corp (ADR)(NYSE:SNE) , Panasonic, Vizio and Sharp that offer 4K TV sets. A large number of firms like DIRECTV (NASDAQ:DTV), Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) have started to stream 4K content but as of now the content selection is limited. VGTel subsidiary and Domicile intends to work with owners of content libraries to meet the demand for UHD programming. These owners want to scan, restore and release their television programs and films in 4K. Domicile studio provides turnkey productions from and features latest Dolby sound stage.
In the last trading session, VGTL share price declined more than 23% to close at $0.00410, with 10.50 million shares traded.