Paramount Pictures creating full-length movies just for the Web

Interesting news that Paramount is Pictures' Paramount Digital Entertainment is entering into an exclusive partnership with two Hollywood execs to create and produce feature-length films for distribution online and through other digital media.

They're working with two producers - Alexandra Milchan and David van Eyssen - who have some experience in the realm of specially-created Web video. David van Eyssen helped produce BMW Films, a 2001 interactive project that hired Hollywood directors such as Guy Ritchie and John Woo to create short online films that featured the German automaker's vehicles.

Paramount has basically said that this is a big experiment, as they'll be trying all kinds of different models - free, sponsor-supported, ad-supported, and subscription.

I'm interested to see if something like this proves to be feasible. I've been wondering if the television networks could themselves create special production companies to bring shows straight to the Web. Would these prove to be financially feasible? Let's say you have a show like Jericho, which created a small but very faithful primetime television audience. Could a show like this be produced in such a way as to reduce costs and bring it to a loyal Web audience?