When Apple Computer launched its iTunes service, many other big-time companies scrambled to set up their own digital music service, hoping to cash in on the new market. While other companies played catch-up, Apple progressed to digital video downloads--and once again it looks like Steve Job’s company is inspiring others.

Sony will launch a digital video service early next year for its PlayStation Portable, reports Financial Times. The service lets consumers download a movie from the Internet to their PC, then transfer the file to a Memory Stick Duo. No pricing or further details on the service were disclosed.

The service will not require any hardware upgrades to the PSP, meaning the more than 20 million PSPs already in the market will be able to view the films. Sony’s 4GB Memory Stick Duo will be able to hold about 10 full-length movies, according to the report.

No participating studios have been mentioned, but because the service limits piracy by allowing only one copy to exist per purchase, film studios may be less wary of licensing their films. Currently, only the Buena Vista Motion Pictures Group (Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax Films) has offered up its films for the iTunes video download service.

[UPDATE] Sony got in touch with GameSpot, and released the following statement on the news: "Beyond games, PSP and PS3 both provide an exceptional opportunity for the downloading and viewing of all types of entertainment content, including movies, television shows, videos and music. As we have stated in the past, we are exploring a number of options to supply such content, including working very closely with all the entertainment divisions within the Sony family."

The reply continues, "At this time, we have not confirmed any further news regarding a potential movie download service for the PSP. You can expect to hear more about downloadable content for the PSP and the PS3 in the coming year."