Sony's Peter dille has confirmed that a video download service is definitely destined for the PSP. During the same interview, Dille looked to defend the lagging UMD format for the PSP. Dille believes that there was an initial lack of communication with movie content suppliers and they were all just shifting all their movies onto the format without thought for the demographic of the PSP. Hence an initial 'failure' was on the cards.

However, the UMD movie format has come in for criticism, with many retailers and movie studios cutting back majorly on the format, and Dille admitted: "The movie issue you're referring to is really a function of our not handling communication with Hollywood terribly well. When the PSP came out, it was a new format, and as with a lot of new formats, what Hollywood does is back up the catalog and say, "Come on guys, let's release all this stuff on the new video format." Unfortunately, we didn't do a good enough job communicating to Hollywood about who was going to be buying a PSP."

He added: "This is a fake example, but it doesn't make sense to do On Golden Pond on the PSP, because that's not the demographic that's buying this thing. When we launched, there was a proliferation of UMD content, and it wasn't the best strategic fit with the demographic. Now we've done a better job of going back and interfacing with Hollywood and saying, "Look, here's what we're doing, and here's what makes sense." I think sense then, they've been a lot more selective in terms of what makes sense and what doesn't. You've seen people like Target come back on with UMD offerings. There have been some hiccups, but I think reports of the UMD's demise have been greatly exaggerated."