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Paramount is to become the first Hollywood studio to make one of its new releases available free on the internet before it has been released on DVD in a move set to shake up established distribution models for film content.
The studio and MTV, which are both owned by Viacom, have done a deal with Blockbuster, the DVD rental chain, to stream the third instalment in the Jackass franchise free on the web, supported by advertising.
Jackass 2.5 will be launched on the internet on December 19 and will be released on DVD, video on demand and via download-to-own sites, such as Apple's iTunes store, on December 26.
The move is likely to make waves in Hollywood because internet consumers will be able to see the film before it is available on DVD. "We're turning digital distribution on its head," said Thomas Lesinski, president of Paramount Pictures Digital Entertainment.
The Jackass internet release comes as the DVD market, which for 10 years has been a cash cow for Hollywood, declines. Sales for the first nine months of the year are down 3.5 per cent on 2006.
Studios are keen to find new ways to distribute content, although none has, to date, involved the free release of a film on the web. It is expected that commercials will appear before and after the film has played.
"Most of the content being consumed on the web has been short form," said Mr Lesinski. "The fact that this is long form, and it's free, makes this compelling."
Paramount has struck a deal with Facebook, the social networking site, to promote Jackass 2.5 to the millions of people using the site. Microsoft's Silverlight video technology will be used to stream the film.
"Most people online get their stuff for free," said David Gale, executive vice-president of new media for MTV Networks' Music Group. "The record companies and the TV companies have figured that out. We weren't going to buck the trend."
"When you think about the Jackass consumer there's a significant cross-over between that demographic and consumers who spend time online," said MrLesinski.
Visitors to a new website will also be able to e-mail film clips, helping Paramount take advantage of viral distribution trends.