But it reversed its decision after critics - including US President Barack Obama - said freedom of expression was under threat.
Some cinemas organised midnight showings for Americans determined to see The Interview on the big screen.
Several hundred
independent cinemas across the US have come forward offering to show the
title after larger cinemas decided not to screen it following threats.
North Korea says the film hurts the "dignity of its supreme leadership"
The film is also being
offered through a dedicated website and via Google services YouTube and
Play, and Microsoft's Xbox Video platform, but only in the US.
A spokesman for Sony told the BBC the release was US-only "at this point".
Massive hack
Sony Pictures initially
pulled the film after suffering an unprecedented hacking attack at the
hands of a group calling itself the Guardians of Peace.
Last week, the US
Federal Bureau of Investigation (FBI) said its analysis pointed the
finger at North Korea. However, many cybersecurity experts have come
forward to dispute this assertion.
North Korea denied being behind the attack but described it as a "righteous deed".
The hackers threatened
to carry out a terrorist attack on cinemas showed the film on its
scheduled release date of Christmas Day. After many cinemas pulled out,
Sony cancelled the release.
The film was branded an "act of war" by North Korea
That move was described by President Obama as a mistake.
Sony's Mr Lynton said digital distribution had now been chosen to reverse some of that damage.
"It was essential for
our studio to release this movie, especially given the assault upon our
business and our employees by those who wanted to stop free speech.
"We chose the path of
digital distribution first so as to reach as many people as possible on
opening day, and we continue to seek other partners and platforms to
further expand the release."
In a blog post announcing its involvement, Google's top lawyer David Drummond said the firm had weighed up the potential fallout.
"Last Wednesday Sony
began contacting a number of companies, including Google, to ask if we'd
be able to make their movie The Interview available online," Mr
Drummond wrote.
"After discussing all
the issues, Sony and Google agreed that we could not sit on the
sidelines and allow a handful of people to determine the limits of free
speech in another country (however silly the content might be)."
Analysis: Dave Lee, BBC technology reporter
If The Interview is
anywhere near as gripping as the drama surrounding its release, it'll
wipe the floor at the Oscars, no doubt about it.
After pulling the film,
and being strongly criticised by the US president, Sony Pictures has
played what was its only possible trump card: calling on help from the
likes of Microsoft and Google to get this film out nationwide.
As experts predicted, by
using several services - and its own site - Sony will not only manage
the load of people flocking to see the movie, but also the stress it may
come under from any possible cyber-attack. Knocking one service offline
is doable for most competent hacking groups - but Google, Microsoft and
Sony all at once? Unlikely.
And with people already
flocking to Twitter to - I'm not kidding - livetweet the film's plot as
they watch, it's well on course to be the biggest movie download we've
ever seen.
North Korea's reaction will no doubt be forthcoming. It will probably be furious. The film is, in its eyes, an act of "terror".
And for movie- and
tech-watchers, there's also a geekier angle to all this. If The
Interview smashes records as an online download, could this be the
future of film releases - a tandem online launch as well as in cinemas?
Perhaps that's too far in the future, but the numbers will certainly be totted up at the end of this exercise.
The Interview saga
The Interview features
James Franco and Seth Rogen as two journalists granted an audience with
Mr Kim. The CIA then enlists the pair to assassinate him.
- 22 November: Sony computer systems hacked, exposing embarrassing emails and personal details about stars
- 7 December: North Korea denies accusations that it is behind the cyber-attack, but praises it as a "righteous deed"
- 16 December: "Guardians of Peace" hacker group threatens 9/11-type attack on cinemas showing film; New York premiere cancelled
- 17 December: Leading US cinema groups say they will not screen film; Sony cancels Christmas Day release
- 19 December: FBI concludes North Korea orchestrated hack; President Obama calls Sony cancellation "a mistake"
- 20 December: North Korea proposes joint inquiry with US into hacks, rejected by the US
- 22 December: North Korea suffers a severe internet outage; US authorities decline to comment
- 23 December: Sony bosses appear to change their minds, saying they will now give The Interview a limited Christmas Day release
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