According to this article in the LA Times Sonys PS3 has joined the online video market place. I'm actually surprised that it took so long.
Considering the fact that the PS3 has been marketed as a media centre, what with the Blu-Ray player and all, it's embarassing it took them this long to get into the video market. Xbox Live is already a big name in the console/download area, despite quality issues, so how will Sony compete?