Digital Video Files
The PlayStation 3 supports a wide range of video codecs for legally owned digital movie files. Window Media Video (wmv), AVI, DIVX, XVID, MP4 and MPEG-2 files are supported. While these files are supported, not all files with these extensions will play, depending on the way the video was created on the computer. Copy-protected files cannot be played in accordance with Sony's stance against Internet piracy.
Blu-ray and DVD
Sony has designed the PS3 with a built in Blu-ray drive. This drive allows visually advanced PS3 games to be stored on high-capacity discs. This drive can be used for high-definition video playback on both Blu-ray and DVD.
Netflix
Sony and Netflix have teamed up to bring streaming digital video to their customers. As of 2011, you have the option of downloading a Netflix client onto your PS3 hard drive. This client allows you to sign in to your Netflix account over your home Internet connection and watch Netflix's library of on-demand videos.
The PlayStation Store
The PS3 is supported by its PlaystationStore services. This store offers digital downloads to customers for a fee. New releases of movies and television shows can be rented or purchased using your credit card over this network. Rented films have digital protection that renders them unviewable after the allotted time, but purchased videos have no such restrictions. Purchased videos can even be downloaded onto a PlayStation Portable (PSP) hand-held device and viewed on the go.