I don't think this has been illterated enough on this site so here is the article by PC world:

Sony is getting ready to directly link its consumer electronics products and considerable movie and TV content libraries.
Later this year the company will begin providing video content to PlayStation 3 users via the recently-launched PlayStation Network, and will start a streaming video service for owners of Bravia TVs with a network connection.
"This continues to be one of the clearest opportunities for Sony to leverage its entertainment assets to differentiate its electronics products," said Howard Stringer, chairman and CEO of Sony at a Tokyo news conference.
As part of the push the company will increasingly build Internet connectivity into its products. By March 2011, it plans to have network-enabled and wireless capable products available in 90 percent of its product categories, and aims to roll out the video services to key devices by the same date.
The PlayStation 3, which shipped with an Internet connection from launch, is one of its most widely used network-capable products beyond PCs. Around 50 million of the consoles are in the hands of consumers and just under 10 million accounts exist on its PlayStation Network, which is used largely for games.
"We have an enormous global installed base upon which we can build network services," said Stringer. "With the inclusion of our Blu-ray player, Wi-Fi and hard drive in every PS3, I am confident that the PS3 is the network home entertainment server of the future."
The next step in the roll-out will be to extend the PlayStation Network to personal computers and later to networked consumer electronics products like televisions and Blu-ray Disc players, many of which can already be hooked up to the Internet. Portable devices like the video Walkman and Sony Ericsson cell phones will also be supported.
Before the PlayStation Network gets to televisions Sony will begin offering streaming content via Bravia Internet Video Link, an Internet contents service it launched in the U.S. in 2007. The Bravia service will launch in the U.S. later this year and in November Sony Pictures will offer the upcoming Will Smith movie, "Hancock," at no cost to all Internet-connected Bravias before the movie's DVD release.
"Sony now has the capability to deliver feature films and television shows of ours or our peers directly to consumer televisions across the open IP network outside the conventional satellite, cable or terrestrial distribution systems ... This initiative is a clear but important glimpse into the future of home entertainment," said Stringer.
For Sony the network strategy has been a long time coming.
Despite enjoying a position as one of the biggest creators of movie and television content in the world and one of its top consumer electronics companies, previous attempts to directly link with consumers, through services like Mora or Connect, have failed in part because Sony chose its own systems over those with wider support in the industry.
But the company's reliance -- or insistence -- on its own technology has changed in the years since Stringer took over.
The new PlayStation Network service, for example, will use Marlin, an open digital rights management system that was developed by Sony, Panasonic, Samsung, Philips and Intertrust.
"We will embrace open standards to improve interoperability among all of our customers' devices," Stringer said.

Interesting to say the least, although the article says that there are 50 million PS3's sold already, which I found funny.

What do you guys think about this?

Yeah, this looks like a big deal. Go Sony!

Well well well... the most obvious error is of course the "50 million" PlayStation 3's in the hands of consumers. But apart from that, doesn't this work directly against Blu-Ray? Or is there something I'm not getting in all of this?

Yeah, DLC will definitely work against Blu-ray, but Sony sees an advantage in offering a broader array of products, for the customers that like DLC as well as physical media. It's often a wise thing to play both sides of things....if Blu-ray doesn't work out well, sony still has the network thingee.

They're just hedging their bets.

i think they meant 50 millions psp's and ps3's

50mil. Maybe they combined PS3 and PSP.

Possible, but I don't detect any usage of PSP anywhere in the article before hand....

They said 50 million cosoles , that includes psp+ps3 , they will also connect psp to PSn. (IMO)

It does seem likely that they actually mean PSP and PS3 sales combined, but that is not what the article is saying. Actually, the wording in the article is pretty clear on that:

"The PlayStation 3, which shipped with an Internet connection from launch, is one of its most widely used network-capable products beyond PCs. Around 50 million of the consoles are in the hands of consumers [...]"

Maybe it's a mistake by the journalist, or perhaps the article was cut shorter and this error got overlooked. Anyhow, if Sony wishes to make Blu-Ray a success, it seems poor strategy to undermine that goal by offering a directly competing product. It sends a message to the market that even Sony thinks the future is in downloading content and not in physical media, so why would others enforce Blu-Ray in that situation?