Like several of its competitors, Paramount is buying into the idea of ZillionTV, offering up content and taking an equity stake in the young VOD company.

ZillionTV allows users to purchase or rent movies and TV shows for viewing on their TV screens. Consumers can also watch such content free if they agree to sit through commercials for products in categories that they choose for themselves.

Zillion also has developed a frequent-watchers program, rewarding viewers in the same way that airlines reward frequent flyers.

Paramount joins Warner Bros., Sony, NBC Universal, Fox, Disney and Lionsgate, which own a stake in Zillion and supply it with content.

Paramount is set to announce Monday that it intends to make "In & Out," "Ordinary People" and other library titles free with commercials, while newer releases such as "Iron Man," "Revolutionary Road" and "The Curious Case of Benjamin Button" can be rented or purchased.