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The film grossed $63.1 million on a $12 million budget. MTV developed its first feature film in collaboration with Paramount Pictures, Beavis and Butt-Head Do America, based on the MTV cartoon Beavis and Butt-Head. By 1995, David Gale was named head of MTV Films. In 1994, the Paramount Television Group and MTV Productions signed a deal to develop projects commissioned by MTV, and gave Paramount the right of first refusal on projects developed by MTV. Shortly after The Arsenio Hall Show was cancelled, Paramount began distributing and producing MTV's The Jon Stewart Show for the syndication market. Paramount began to distribute material from MTV and Nickelodeon. Shortly after Viacom bought out Paramount Pictures. Shortly afterwards, MTV Productions tried for an entertainment strip Real Time, to be distributed by Viacom Enterprises, which was owned by MTV's parent Viacom, and scheduled on air for the 1994–95 season, but never materialized. Joe's Apartment, based on a short aired on MTV, came out on July 26, 1996, and grossed $4.6 million on a $13 million budget, making it a box office bomb.

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Only one movie came out of the deal due to the 1994 acquisition of Paramount Pictures by MTV's parent company Viacom. MTV then signed a two-picture deal with Geffen Pictures to start making motion pictures afterwards.

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Its expansion was to produce shows for theatrical release, broadcast TV and cable, syndication and the international marketplace. MTV Productions started in 1991 and went into expansion two years later, with Doug Herzog serving as president of the unit. The MTV Films unit was part of Paramount Players until 2020. Its films are released by fellow Paramount Global division Paramount Pictures. Founded in 1991 as MTV Productions, it is a consolidation of the former MTV Films group established in 1996 and the MTV Production Development/ MTV Studios group of 2003–2021, it has produced original television shows like Beavis and Butt-Head, Æon Flux, Jackass, My Super Sweet 16, Daria, Celebrity Deathmatch, Clone High and The Real World and films such as Election, Joe's Apartment and Napoleon Dynamite. MTV Entertainment Studios is the film and television production arm of MTV Entertainment Group, a subsidiary of the Paramount Media Networks division of Paramount Global.