Montreal’s Felix & Paul Studios has inked a multi-picture production deal with one of the world’s most acclaimed film houses, 20th Century Fox.

And in a year when Hollywood is increasingly willing to bet on virtual reality (VR) in movie theatres, it’s a deal that places more spotlight on one of the city’s shining examples in a new, hot tech trend.

The Emmy Award-winning studio Felix & Paul will team up with the Fox Innovation Lab to develop, direct and produce VR experiences for Fox properties. The pair will co-develop “experiences” that utilize Fox’s IP, the first of which will be announced early next year.

Virtual reality is an entertainment format that uses responsive headsets to put viewers in the middle of the action. Tech giants like Facebook, Samsung, Sony and Google have all embraced it.

In November 20th Century Fox released “The Martian VR Experience,” a virtual-reality simulation that put viewers inside the spacesuit of Mark Watney, Matt Damon‘s character in the 2015 movie. It cost $20, and was available on Playstation VR and the HTC Vive, the two platforms with hand controllers available currently.

“The Fox Innovation Lab has long understood that VR requires an entirely new language of storytelling, enabling audiences to engage with characters and stories in ways never before possible,” said Felix & Paul Studios’ Ryan Horrigan, head of the studio’s LA office. “Fox continues to take a major leadership role in this new medium.”

The Fox Innovation Lab at Twentieth Century Fox was established as a research and development center. The partnership with Felix & Paul Studios should indicate that Fox is serious about delivering cinematic VR for viewers.

Moreover, the Lab works closely with production, marketing and distribution across all 20th Century Fox divisions, and with next-gen technologies including 4K Ultra HD with high dynamic range, mobile content experiences, and virtual, augmented and mixed reality, all featuring immersive audio.

Mike Dunn is the president of 20th Century Fox Home Entertainment and Fox Innovation Lab. He called Felix & Paul the “perfect partner to help realize the possibilities for the future of consumer entertainment.”

In 2015, the Fox Innovation Lab worked with Felix & Paul Studios on a proof of concept project for the film Wild. Directed by Paul Raphaël and Félix Lajeunesse, Wild - The Experience was an immersive three-minute virtual reality experience set in a private moment on the Pacific Crest Trail with actresses Reese Witherspoon and Laura Dern’s characters from WILD, the adaptation of bestselling author Cheryl Strayed’s transformative journey.

Felix & Paul Studios calls itself the “world’s only full-spectrum VR studio,” and “the industry leader in the field of high-end cinematic VR.” It has created original content (MIYUBI, Nomads series, Strangers), collaborations with other players (Jurassic World, Cirque du Soleil, Wild) and world personalities and leaders (President Barack Obama, LeBron James, President Bill Clinton).

The studio previously raised US $6.8 million from investors in June. Among the company’s backers are Comcast Ventures, the Phi Group, LD Ventures and Caisse de Depot et Placement du Quebec.