Damien Lindsay Paisley, 43, was freed from the Otago Corrections Facility this week with more than two years remaining on his six-year prison sentence.
He continued to deny the sex attack but the parole board said he had "insight" into his crimes.
"He acknowledged that he should not engage in any videoing of intimacy with another person, and he appears to have developed a clearer understanding of risk and of consent," panel convener Neville Trendle said.
Paisley matched with his victim on Tinder in 2020 and they met in person after communicating through the dating app.
Their online conversations later became more personal, which led to a video call during which both performed intimate acts.
However, the woman had no idea Paisley had used an app on his phone to secretly record her.
Over the following days, he repeatedly hinted about the existence of the video and claimed he would delete it if the victim came to his house.
She told the jury at the Dunedin District Court trial in 2021 she planned to watch a movie with the defendant and nothing else.
But Paisley repeatedly raised the issue of the sex tape as he pushed her into degrading acts.
Last year, he challenged the guilty verdicts before the Court of Appeal but his arguments were roundly rejected.
The parole board heard he had undergone drug counselling while behind bars as well as completing the deniers’ programme.
Mr Trendle said Paisley would need "significant support" in the community and obtaining employment would be critical.
Among his parole conditions were:
• To live at a Southland address as directed by Probation.
• To abide by a 10pm-5am curfew.
• To submit to electronic monitoring.
• Not to possess any internet-capable device.
• Not to use alcohol or non-prescription drugs.
• To attend any treatment as directed.
• To obtain Probation approval for any changes in employment.
• Not to contact victim.
• Not to enter Otago.
