It means you need to renew the AACS encryption key on your PS3 to play Blu-ray discs. In order to do so you'll have to get your PS3 to connect to the Internet and update the software to the latest version available. You can also simplify things by ripping Blu-ray to MP4. That way you can directly play the MP4 video on PS3. Check out this tutorial on How to rip Blu-ray to MP4: How to Rip and Convert Blu ray to MP4 with Blu ray to MP4 Converter
It is only to reconize the bluray region and material on the bluray that is protected agains piracy just perfome an update anyways is always good to keep your system with the newer update
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