Cinema mode on the PSVR was always a disappointing missed opportunity to me. At launch the video quality was barely above 480P quality for movies or games, and the constant need to re-center the image because of drift was highly annoying.
Well, the latest beta (one dload for the PS4, one for the PSVR) fixes the first problem, and I can say first hand that the quality of the visuals was GREATLY improved - for medium (theater picture sized) or large (IMAX picture size) screen settings. Not quite razor-sharp HD, but just barely a notch below. Sound can be fed through the headset, but since 3D audio isn't an issue, I leave them off and stick with the 5.1 arrangement I normally enjoy. Overall, this beta is an awesome upgrade.
BTW, for someone above who mentioned minor pixel shimmer yesterday, it is there but to me it is only seen on the extreme edges of the headset's viewpoint, and on large picture mode only. As soon as I move my head towards that area, it sharpens up. Is that what's called foveated imaging? Either way, it isn't an issue at all as you almost ever really notice or think about it.
Now, with all that said, I will still mostly watch my 2D Blu-rays and such on my 60" HD screen since I'm only 8-feet away from it unless I want the "IMAX" setting experience.
What about 3D Blu-ray? My HDTV outputs 3D so I already have a collection, but with the PSVR beta update, the experience is now tremendously enhanced. With an HDTV, the 3D is not quite as in-your-face impressive as it is on PSVR, whether choosing medium or large screen size.
Also, the image quality is much, MUCH better than standard HDTV 3D because PSVR isn't darkened like the shaded lenses of the 3D glasses. There is also no shutter speed flutter such as with the HDTV 3D glasses open and close alternate lenses, which again points to a far more pristine image on PSVR 3D.
Compared to every single 3D video viewing experience I have tried over the years, PSVR tech is easily the best.