Since it says u hav 2 update the system to renew the encryption key, then update the system lol
go to settings then system update and it will update it to the latest firmware or u can dload it from the playstation website, this will probably solve ur problem :D
ohh and just to clarify sumthin...what type of movie r u playing, a dvd? and if so is it PAL or NTSC. if u hav a PAL ps3 and u are trying to play an NTSC movie on it, then sadly it wont work...
hope this helps! :D
Just get your PS3 online and update the software, and then the encryption key will be renewed. And then you can try playing the Blu-ray disc again. There's another way for you to watch the movie on PS3 and that is to convert the Blu-ray movie to MP4. As the video player in PS3 allows playback of MP4 videos from USB drives, you can put the MP4 video in your drive and easily play it with your PS3. That could be a simpler solution. You can check out how you can rip your Blu-ray movie to MP4 in this link: How to Rip and Convert Blu ray to MP4 with Blu ray to MP4 Converter
there are series of problem in ps3 which
can be solved without much technical knowledge ........ your problem belong to
that so dont worry i will give you the link to download the ps3 repair
guide that will help you a lot....
click here to download repair guide
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