If you want to play Blu-ray movies on PS3 and it said it need to update, then you can check on this article which will show you how to renew encryption key both online and offline:
How to Renew PS3 Encryption Key to Play the Latest Blu-ray Discs on it
Hello,
There are some firmwares that support playing movies on the game, if the files are not complete, then the ps3 will not be able to play any movie, and some times it might affect game discs as well.
So when next your playstation 3 wants to system update, allow it, so it will automatically restore the files that are necessary to play a blue ray disc.
Systems update is done online, so you must have an internet connection either wireless or by connection for the playstation, and if it pops up the system update message next time, allow it. It will install new firmwares for the playstation 3 and you will be able to enjoy better services on the game.
Take care and good luck
Hope this was helpful
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