Sony wanting to go a new route with UMD (PSP Movies)

Sony announced at the end of July that they wanted to go with an online video system, possibly the same one as the PS3 is coming out with. They say the only problem with this is storage, they have to figure out a way to get the movies small enough to fit on a medium sized Memory Stick Pro Duo that currently only goes up to 8 gbs. They are thinking in the future of adding a small Hard Drive in the unit or a bigger built in flash memory.