I would say out of these two Sony's is the better idea, streaming netflix type service with all their movies and content... could be a win win... and definitely better than MS's hardware type strategy without any real useful content (as of yet).
*BUT* will it compete with Netflix/Lovefilm which is what I would do... I don't think it will. I just don't think PlaystationNow is a good name... SonyNow would have been better. Who knows, guess we will see.