During E3 Sony unveiled their online PSN video store which will allow PlayStation gamers access to scores of movies and TV shows for both the PS3 and PSP.
European users will have to wait till next year though as Sony strike deals with content providers in the EU. Major houses like Fox, MGM and Lionsgate are already signed.
Content can either be rented or purchased from the store and then transferred from the PS3 to PSP or vice versa - it can exist simultaneously on the two devices as well. The media itself will be available in both SD and HD quality.