Sony counters the Xbox 360 Netflix offering with their own movie rental and sale service on the Playstation Network store.

The Sony Playstation Video Store offers videos in SD and HD and you can choose to either just rent them or buy them.
Downloaded movies and TV shows can be transferred to the Sony PSP to watch on the road.

You can access the Playstation Video store also on your PC.
Sony announced several of the big movie studios as partners. Netflix definitely still has a larger catalog, but Sony's service does not require a subscription.
The Video Store on the Sony PS3 launches today.