Sony has put the final nail in the coffin for usage of their UMD (Universal Media Disc) format for movies by announcing that you will soon be able to transfer Blu-ray movies that you own to your PSP by way of the Playstation 3.
According to Gizmodo, the functionality will be available this year, will (most likely) be free, and will work on (almost every) Blu-ray Disc under the sun. Some specifics about the transfer process are that the movie files will be around 1GB, in standard definition, optimized for playback on the PSP, and will take about 3-5 minutes to download to the PSP's memory stick. However, the catch is that the movies will be protected by DRM (Digital Rights Managment), which is no surprise considering that you're copying a copyrighted movie onto a portable device and could easily share it with others. There's no word on what exactly the details of the DRM policy will be (one of the restraints may be that you can only copy each disc a certain number of times). My guess is that it will be just like the DRM used for PSone games downloaded from the Playstation Store.
But who knows. Knowing Sony it could be a DRM scheme that drops a rootkit on your PS3/PSP and monitors every single thing you do before dropping that rootkit in your brain and controlling you.