The film is shot in the style of a reality TV series. Five new contestants are selected in a random lottery and, along with the winner of the previous series, comprise the six Contenders. The film purposely leaves many key details unexplained, as the viewer is supposed to be watching only what the creators actually aired in the fictional TV show. How the show became so powerful as to randomly select people to be killed is unexplained, but the Contenders treat it as something they cannot control. Contenders are given a pistol, though they may acquire other weapons, and the last one left alive is the winner. Contestants are forced to play the game, regardless of their wishes. A contender who wins three tours of the game is freed from it.
Seven Tulane University undergraduates – Sara, Nick, Beth, Malik, Maya, Blake and Gordon – drive to Sara's family vacation home on a private lake. There, Sara encounters her old boyfriend, Dennis, and his friend Red.
The film opens with Super 8 footage depicting a family of four standing beneath a tree with sacks over their heads and nooses around their necks. An unseen figure saws through a branch acting as a counterweight, causing their deaths by hanging.
The film opens with a family being hung up like scarecrows in a corn field with sacks over their heads and burned alive. It is revealed to be the nightmare of nine-year-old Dylan Collins, who is staying in a rural farmhouse with his twin brother Zach, and their mother Courtney (Shannyn Sossamon).
In the 1970s, a mental institution near the border of Russia and Finland was shut down when it was discovered that main administrator Doctor Andersson (who had taken to calling himself "The Auteur") had filmed himself torturing patients to death. Most of the doctor's films were confiscated, though the rooms in which they were developed and screened were never found.
The minions of serial killer Jesse "ChromeSkull" Cromeans locate their employer and bring him back from the brink of death, though the injuries he sustained have left him disfigured. As ChromeSkull recuperates, tended to by an assistant named Spann, his disgruntled second-in-command, Preston, tracks Princess and Tommy, the survivors of the previous film, to a motel. Preston kills Princess, which infuriates ChromeSkull, while Tommy is spared, due to being out at the time of Preston's attack.
The latest craze is $la$her$, a Japanese blood sport game show where contestants can win millions of dollars if they survive being hunted through various arenas by costumed killers. All crimes are legal on the sets of the show, and what few rules there are (like having to remain motionless during commercials) are enforced by shock collars that the players and murderers must wear. The latest episode of $la$her$ is an all-American special in which the six contestants (Megan, Devon, Michael, Rick, Rebecca, and Brenda) will be pursued by "newbie" slasher Preacherman, and returning fan favorites Chainsaw Charlie, and Doctor Ripper.
Due to masturbating to Clown Porn, college student and sex addict Michael Brichums misses a date with his girlfriend, Carrie, prompting Carrie to dump him. Later, Mike goes to a sex shop, where he finds a magazine featuring Andromeda Strange, an alt porn star whose films are so extreme they have been banned in numerous countries. Mike asks the clerk about Andromeda, and is told that obscenity laws prohibit the store from selling her merchandise, but he can probably find her films online. When Mike leaves, the clerk disappears, leaving another employee (who was in the washroom) to find Mike's receipt, and wonder "Who the Hell rang this up?"
Animal experimentation footage is shown, followed by a video of a man dismembering a female body in a bathtub. It is implied that the man masturbates after the corpse has been sufficiently mutilated. Next, someone browses an extreme porn website, and clicks on the link for "Snuff Fantasy". Images of animals and people (mostly women) being tortured and killed clutter the screen, followed by a video of a pig being stabbed in the throat. A man asks "Until what point are you willing to watch? In other words, what do you want to watch?" A bound, bloodied and crying woman in her undergarments is shown in a washroom. She gets up, moves the shower's curtain, and screams as the door is flung open.
In the last two days of 1999, Los Angeles has become a dangerous war zone. As a group of criminals rob a Chinese restaurant, the event is recorded by a robber wearing a 'SQUID', or "Superconducting Quantum Interference Device", an illegal electronic device which records events directly from the wearer's cerebral cortex, and when played back through a MiniDisc-like device called a "deck", allow a user to experience the recorder's memories and physical sensations. Lenny Nero is a former LAPD officer turned black marketeer who deals in bootleg SQUID recordings. His main supplier, Tick (Richard Edson), tries to sell the robbery clip to him. Lenny eventually agrees to buy it at a reduced price, having to cut out the last part where the rig records the robber's death by falling; clips that record the wearer's death are known as "blackjack" (snuff) clips, because the experience is described as "jacking into the big black" by Tick.
Billy (Marina Zudina), an FX make up artist who does not have the physical ability to speak, is in Moscow working on a low budget slasher film directed by her sister's boyfriend Andy (Evan Richards). On one particular night Billy returns to the set to fetch a piece of equipment for the next day's shoot when she is accidentally locked in the studio. Being unable to speak but having the ability to communicate with her sister Karen (Fay Ripley), Billy makes several telephone calls but is interrupted when she discovers a small film crew working after hours to shoot a cheap porno film. Watching unseen Billy is amused until the performed sex becomes sadistic. When a masked actor pulls out a knife and stabs the actress (Olga Tolstetskaya), Billy reacts and is discovered. She flees pursued by the homicidal film crew.
Mike Black Reilly (Stephen Dorff) is an NYPD detective who is called to the scene of a mysterious death in the subway system. The victim, Polidori (Udo Kier), exhibits bleeding from his eyes and other orifices and, by the frozen look on his face, appears to have seen something horrifying before being hit by a train.
The film starts as Angela sits on a subway. The train halts and passengers are told to evacuate, as a man has just stepped in front of the tracks and died. While being led out of the station, Angela begins to move towards the tracks to see the man's remains. She is warded away at the last instant. Angela is a university student in Madrid, writing a thesis on audiovisual violence in the family. At a thesis meeting, she asks her thesis director, Figueroa, to help her find the most violent videos in the school's library. After class, Angela seeks out the help of a fellow student, Chema, who is known for his collection of violent and pornographic videos. As Angela begins to watch violent films with Chema, Professor Figueroa finds a tape in a hidden hallway of the school's audiovisual archives. The next day, Angela finds Figueroa dead of apparent heart failure in the university's viewing room, a video tape in the player. Angela takes the tape and leaves for class. She later learns that Figueroa died of an asthma attack, and that a younger professor, Castro, will now be directing her thesis project. Angela goes to Chema's house to watch the stolen film, and Chema realizes that this is a snuff film, or a film of someone actually being murdered. As they watch the women being tortured, killed and disemboweled, Chema realizes that the women in the film was named Vanessa, a girl who attended their university and went missing two years ago. Chema and Angela are also able to determine which kind of camera the killer used, and XT 500, based on the quality of its digital zoom, and that the film was shot in someone's garage.