The prices are about the same as Apple and Microsoft.
But it is not a Netflix competitor on catalog or pricing.
(Technically Netflix streaming video is free; it is a fringe benefit of the DVD service. Or, if you choose to ignore the rented disks, it works out to $1 an hour so either way its a different critter.)
As for PSP support, you're supposed to be able to move the videos to PSP from the PS3. Not sure if its implemented yet. Or if it is for the rentals or just the purchases. With Sony's track record, it could just as easily be fully implemented or due some time the next decade.
PCWorld has a hands-on article:
http://www.pcworld.com/article/14853...deo_store.html