Sony to launch online video service for PlayStation 3 Posted by XanTium | 22-4-2008 0:41 EST

From latimes.com: [QUOTE] The entertainment and electronics giant is preparing to launch an online video service through its game console PlayStation 3 as early as this summer, studio executives familiar with the plan say. The company has been in licensing talks with studios in recent weeks, according to these executives, who asked to remain anonymous because of the sensitivity of continuing negotiations. The initial version of the service would include movies and television shows flowing from the Internet to the PlayStation 3. Sony is trying to capitalize on its Trojan horse in the living room, the PlayStation 3. The console is already connected to the TV and the Internet, and has sold more than 4 million units in the U.S. and 9 million worldwide, according to Wedbush Morgan Securities in Los Angeles. The console gave Sony the decisive edge in the battle to establish its Blu-ray discs as the standard for high-definition video in the home, trumping the HD DVD format backed by Toshiba Corp., Microsoft Corp. and others. The new service would position Sony to compete with the growing number of Internet-connected devices and services that deliver video to the TV, including AppleTV, Vudu and Microsoft's Xbox 360 console. [/QUOTE] Full Story: latimes.com

I realise this is distant future of al services but it really doesn't appeal to me. ISP caps and speeds that are not lightning fast keeps this away from a good number of people, I suspect.
There are other things i would want to see Sony sort out first.

If they could deliver true high definition using a good codec, they may be able to gain on the other services. The big drawback to the other services that offer high definition is using the WMV codec, it makes the video look "softer' than from a disc. Apple TV uses a good codec for high definition video, but their selection is sparse.
And Live makes you buy blocks of points to rent a movie. So you always have leftover points.
Now if you can use a minimum 4-6MB/s connection, the movie could start playing after a certain amount is downloaded. You would not have to wait for the whole 5+ GB to download. And if the compression was decent and worked well, this service could outdo the cable companies' high def offerings. Comcast's high def films have a soft look to them and you get blocking every once in a while due to their compression.
Hopefully Sony can learn from the others' mistakes.