VGTel Inc (OTCMKTS:VGTL) stated that its subsidiary entity Motion Picture Scanning Services, Inc. entered into a cooperation agreement. The deal is finalized both with Domicile NYC and New York City film studio. Out of the two firms, one will work as MPSS’ sales representative to support and showcase company’s film scanning services.
VGTel disclosed that the cooperation deal with Domicile NYC is as per the company’s strategic plans. MPSS took several measures to outreach its film scanning offerings to the particular 35mm film format as against 65mm Giant Screen films. The recent change is popularly seen in the segment of feature films and the television programming, and it is one of the prime reasons company wants to use it.
The management view
James Humann, the COO of VGTel subsidiary said that the entertainment segment is making consistent progress towards 4K and the expert team believes UltraHD is future of television. The new deal entails subsidiary to give value-added service to content owners as well as producers. Such offerings results from combination of the film scanning operations and rich experiences in post-production. The deal is expected to support future growth.
VGTel operates in a competitive industry and therefore it becomes essential to take strategic decisions to stay ahead in race. There are a number of TV makes including Sony Corp (ADR)(NYSE:SNE) , Sharp, Samsung, LG, Vizio and Panasonic that are trying hard to make space in industry of 4K TV sets. Even firms like Amazon.com, Inc. (NASDAQ:AMZN) have been working on 4K content.
The advancements are in initial phases and just provide limited access. MPSS and Domicile will associate with content libraries to fulfill the increased demand for UHD programming. The need is from both the side as the content libraries owners too want to have 4K solution in their system. On Thursday’s trading session, the share price of VGTL surged 15% to close at $0.00230.