It is believed to be the first commercially produced erotic movie made in Myanmar, a country where even talking about sex is often considered taboo and the possession of "obscene" objects is punishable with up to three months in prison.
Art of Myanmar accompanied its two-minute trailer video with a post that read, "We have now proudly launched Burma's first ever [porn] HD." Would-be customers were encouraged to place orders from their Viber accounts. But after the company's own account received more than 2,000 messages in 24 hours, it crashed.
According to media reports, the movie features a girl who wears a surgical mask and has her face blurred throughout the film.
Art of Myanmar said it cost them 400,000 kyat ($300) to make the film.
The group's Facebook page was taken down two days after the police launched their investigation.
"Myanmar police are now in the process of investigating to take action, especially the crime department," the head of the force's Communication and Technology Department, Colonel Tun Nay Win, told reporters.
He added that "the case is concerned with technology" but declined to give further details on what laws exactly the company may have violated.
Before today, Myanmar has only seen short sex films distributed by voyeurs on social media, as the internet was mostly unavailable prior to 2011, when the military junta that ran the country stepped down from power. The spread of the internet accelerated massively when cheap SIM cards became available after 2014.