"I gave the full story to TMZ," Blatt told XBIZ. "The tape was made a while ago. She's basically a born-again Christian who didn't want anything to do with being a porn star any more."
Jackson, 27, played David Hasselhoff's son Hobie on the hit TV show from 1989 to 1999. He confirmed his appearance in the video, but also said he was coerced into surrendering the tape.
"This video was made by my best friend. [It's] between me and a casual sex partner, who just so happened to be a former porn star," Jackson told TMZ. "I was later physically threatened if I didn't turn the DVD over to some drug-addicted thugs.
"So I gave it up for her and so they would not beat me up and 'make my life hell,' as they had threatened. I was blackmailed."
Rights to the 45-minute tape are currently being offered for sale.