Wanting to play a movie and it is saying perform a system software update to renew the encryption key and i don't have internet.

try and update the software and hardware of the ps3 first

You may have to renew the AACS encryption key to play content such as movies on commercially available BD video software (BD-ROM). If a message indicating that the encryption key needs to be renewed is displayed, update the system software to the latest version. The encryption key will then be automatically renewed.
AACS (Advanced Access Control System) is a copyright-protection technology that is used on Blu-ray Discs. The copyrighted content is protected by setting an encryption key on both the disc and the device used to play the disc.
An AACS encryption key expires in 12 to 18 months and must be renewed. There may also be other times when the key has to be renewed. in the manual

Yes it does have wireless internet. Go to the beginning of the cross bar menu, where system update is. and scroll down, you will see network options.

You need to perform a Firmware Update.

hello,
message indicating that the encryption key needs to be renewed is displayed, update the system software to the latest version. The encryption key will then be automatically renewed.
i hope i have helped let me know how it works

Here is a link to Sony's instructions on how to update:
http://manuals.playstation.net/document/en/ps3/current/settings/update.html

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

hO wA

ok jump on google and type in latest update for ps3, download the update and copy it to a flash drive i.e usb stick and then type into google how to perform ps3 update with flash drive and select the search result that is posted by sony and it will guide you through the rest hope this helped

You'll have to update the system software for your PS3 for it to play blu-ray movies.

You can read about it here:
http://manuals.playstation.net/document/en/ps3/2_60/video/aacs.html

On that page click on where it says "update the system software" and then on the next page it will explain the different ways you can upgrade the software.