BT's TV over broadband will launch next autumn and give customers access to on-demand film, music and television, as well as communications services through their television sets.
The service is being claimed as a world first, and is being offered to BT Broadband customers without the need for monthly subscription fees.
Paramount's deal will see it provide BT with recent film releases in the pay-per-view window as well as a library of older and classic films, which will be served on an on-demand basis. BBC Worldwide is to provide what is described as "blue-chip programming". It is believed this will include top BBC comedy and dramas such as 'Dr Who' and 'Extras'.
Ian Livingston, BT Retail CEO, said: "Our customers will be able to enjoy enhanced TV services and easy access to a wealth of interactive content and new services straight to their TV.
"Whether you are a music fan, love films or hooked on drama you will get the best in entertainment when you want it. BT is defining next-generation TV."
BT has already signed deals with Philips to supply set-top boxes, which will deliver the high-definition service, and Microsoft for the software.
The company has also unveiled plans for an enhanced voice-over-internet telephone service to be launched in the spring, featuring high-definition sound quality.
At the same time, it will launch a new range of video phones that will allow people with a BT broadband line see the person they are talking to on the phone.
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