Trailer here. Movie looks pretty dreadful, but I was laughing straight through the trailer, so I guess it might be good for that at least.
Anyway the general gist of it seems to be that there's some kind of evil spirit that can store itself on tape. A kid watches the evil tape and is possessed by it. He later spreads the possession to some girl for nefarious purposes. Doesn't appear to have any transformation beyond pale skin.