TMC) that more details will be announced month, presumably at E3. The first images of the program were found via Hirai's presentation on the Sony's corporate site (PDF file via PS Beyond).
Sony has already launched a video on demand service with the Korean PS3. The service would compete with, among others, Microsoft's Xbox Live Video Marketplace, which launched November 2006. We can't help but wonder, given rumors and advertisements, if "movie downloads" translates to general video downloads (TV, movie, etc.). We'll find out more next month.