Prof. Nitzan Ben-Shaul in a New Media Conference
In 2008-9 Prof. Nitzan Ben-Shaul from the department of Film and Tv in Tel-Aviv University created the first feature length interactive movie "Turbulence", which enables the viewer to decide on the outcome.
"Turbulence" won the grand experimental award at the Berkeley festival and the film is based on technology developed by Ben-Shaul.
For a recent post about "Turbulence" in UCSD's Filmatic Festival, 2014 see: http://filmaticfestival.com/artist/nitzan-ben-shaul/
Also see an qarticle in "Haaretz" here: http://www.haaretz.co.il/gallery/1.1154798