The joint venture will see the costs of production split, with audiences getting the chance to view programmes first on Five, then on the Viacom and BSkyB-owned Paramount Comedy Channel.
Five and Paramount have successfully poached the BBC's acting editor of new comedy, Graham Smith, who has worked on hits 'Little Britain' and 'So Graham Norton'.
Smith will report to Five controller of entertainment and features Ben Frow and Paramount Comedy director of programming Heather Jones.
Head of acquisitions at Paramount, Sarah Mahoney, has been promoted to head of programming and will work alongside Smith on commissioning the new comedy ventures.
The deal will help Five produce quality programming on its notoriously small budget, as well as providing Paramount with a terrestrial outlet for its multichannel shows.
Paramount has hinted that any new shows with Five may well travel to the US, as stalwarts 'Frasier' and 'Sex and the City' have ended, leaving a schedule waiting to be filled by exciting, new talent.
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