During their keynote address on Tuesday, Sony announced their video store service. A service that will be built right in to the Playstation Network Store and offer movies and television shows for rent and purchase. This is obviously much like the Microsoft service we have enjoyed on Xbox LIVE Marketplace for some time now, but Sony has a few exclusive studios, a cheaper pricing scheme, and the ability to actually purchase movies as well as rent them.

Perhaps the most surprising news came when Jack Tretton, President and CEO of Sony Computer Entertainment America, didn’t give us a timeline months out, weeks out, or even days out. He mentioned that the service will be available that night to a cheering media crowd. Tretton also reminded us to check back often as new content is updated on the store weekly.

Tuesday night the service did go live, and is available now to all PSN Store customers.

Television episodes cost $1.99, and movie rentals cost anywhere from $2.99 to $4.99. To purchase a movie expect to pay $9.99 to $14.99. Both HD and standard definition formats are available for download. This is a pretty good deal when one considers the current price of a movie ticket.

The functionality between the PSP and the PS3 is also showcased by the new PSN Video Store, as you can move any content purchased freely between the two formats. This will allow you to take any movie you purchase and transfer it to your PSP via the PS3 so you can watch it on the go.

Sony has a good number of studios and partners lined up initially as well. Major studio support includes Sony, Fox, MGM, Lions Gate, Warner, Disney, Paramount, Turner, Funimation, and they have announced they will support all movie and television studios to publish content over the PSN.