Which means we’re in for an interesting game of chicken between Time Warner’s movie studio and the two rental services. And the result will be meaningful for Netflix, too.

Here’s where things stand: Warner Bros wants to double the “window” that keeps new DVDs away from rental services from 28 days to 56 days, a strategy that’s supposed to encourage would-be renters to buy DVDs instead. Netflix intends on going along with the plan and will be able to buy discs directly from the studio at wholesale rates.

Warner plans on announcing the new terms next week at the Consumer Electronics Show. But though I reported yesterday that Dish Network’s Blockbuster and Coinstar’s Redbox had signed on, the two companies — directly and indirectly —  say that’s not the case. Earlier today a Coinstar rep told me the company won’t agree to a longer window, and a person familiar with Blockbuster’s thinking now says the same thing.

If neither side backs down, then Blockbuster and Redbox would have a marketing advantage over Netflix, since the companies could boast about getting new movies before their rival.

But that assumes they can get their hands on the movies. That will be costly, and perhaps quite difficult.

In the past, Redbox has bought movies directly from retailers (Netflix also used to do the same thing in the service’s early days. But chains like Wal-Mart and Target have instituted buying caps on their discs  that are supposed to thwart that strategy. (Thanks, Janko Roettgers.)

Grab your popcorn!

A new deal between Time Warner’s movie studio and Netflix, Redbox and Blockbuster will double the “window” for new releases. That means the services will now have to wait 56 days after the discs first go on sale to offer them to their customers, instead of 28 days. [UPDATE: Redbox parent Coinstar now says they haven't agreed to a new deal; see below]

The move is part of Hollywood’s ongoing campaign to bolster flagging DVD sales, and sources tell me the new deal is supposed to be announced at next week’s Consumer Electronics Show in Las Vegas. Warner Brothers executives have already talked publicly about extending the current window.

This is the second time that Warner has been able to get the rental services to wait before distributing its movies.

In 2010, it struck deals with Netflix, and later Coinstar’s Redbox, to wait 28 days before renting its new discs. Coinstar and Netflix later landed similar pacts with most of the other big studios. (Coinstar did up end up in legal battles with Universal Studios and 20th Century Fox, which like this Web site is owned by News Corp.)

Two years ago, Netflix was able to argue that by delaying access to DVDs, it was able to get its hands on more streaming content, and lower prices for the discs it did buy. This time around, though, Warner won’t be granting any additional digital rights to the studios. It will simply be offering them the ability to buy discs in bulk, at a significant discount to retail pricing, like they already do.

Earlier today, news broke that HBO, another Time Warner unit, would stop selling its DVDs to Netflix altogether, but sources tell me the two moves aren’t directly related. Next week’s planned announcement is supposed to be tied to Warner Brothers’ continuing push for Ultraviolet, an industry consortium that’s supposed to allow home video buyers to watch their purchases on multiple machines, in multiple formats.

Reps for Time Warner, Coinstar, Netflix and Blockbuster parent company Dish Network declined to comment.

UPDATE: Coinstar is now commenting, via email. “The current agreement Coinstar has with Warner Bros. is to receive movie titles 28 days after their release. No revised agreements are in place.” The company’s current deal with Warner Bros. expires at the end of January; PR chief Marci Maule referred me to comments CEO Paul Davis made last fall about pursuing “workarounds” if studios try to extend their windows.

Netflix (NFLX) has agreed not to rent the Time Warner (TWX) studio’s movies for the first 28 days after they go on sale. In return, it will pay the studio a reduced fee when it does rent the discs, and will get more movies to offer via its growing Web streaming service.

Hard to get a very good sense of the deal because no dollar signs have surfaced so far. But the broad strokes sound good for both sides: Warner gets a big distributor to help it protect its retail sales for a bit longer, and Netflix gets to reallocate the money it spends from discs to digital.

Here’s Ted Sarandos, Netflix’s Hollywood emissary, via Reuters:

Sarandos declined to comment specifically on the economics of the deal but said it represents meaningful savings in terms of what it spent on Warner’s physical discs in 2009. He said, however, Netflix was reinvesting those savings in streaming.

“On a net basis in 2010, we’re growing our spending on the studios even if we are saving on physical DVDs,” he said, adding he expects this trend to continue as more and more customers seek movies through its streaming service.

“In 2010, Netflix will spend $600 million on postage,” said Sarandos who envisions “moving that entire bucket of spending to Hollywood and out of the post office.”

Note that this is exactly the agreement that Warner and other studios have not been able to strike with Redbox, the upstart rental outfit, which has led to a legal fight.

And it helps Netflix answer a question I hear more and more often these days: When will it be able to expand its selection of digital movies, which right now remains just a fraction of its physical catalog?

I’ll be able to ask CEO Reed Hastings that question myself on Friday during an interview at the Venetian Hotel in Las Vegas, where the All Things Digital team is gathering for the annual Consumer Electronics Show. You can listen in to what Hastings has to say at CES via a Web-streaming offering of our own Friday afternoon. Some details here, and more to come.

Terms of the deal haven’t been disclosed, but I’m told the transaction values the joint venture at $300 million. Google’s (GOOG) YouTube isn’t an owner in the JV but will share revenue in exchange for lending Vevo its massive distribution platform. The site, which will exist both outside YouTube and within YouTube as a branded channel with its own player, is scheduled to launch later this year.

Vevo has been seeking an outside money source for some time; PaidContent had previously reported the venture was looking for a $300 million valuation.

But the most important part about the outside money is that it’s outside: The investment is designed in large part to allay antitrust issues, given that Vevo’s existing owners represent two of the four major music labels. Providence provided the same cushion to Hulu, which was originally put together by GE’s (GE) NBC Universal and News Corp.’s (NWS) Fox.

Abu Dhabi Media, which is owned by the Abu Dhabi government, has made several forays into Western media, but until now, all of its deals have been focused on Hollywood. Two years ago, for instance, the company announced a $1 billion pact with Time Warner’s (TWX) Warner Brothers to finance movies and build a theme park, though that deal has yet to yield much activity. Earlier this month, it made a much more modest $10 million pledge to back Walter Parkes and Laurie McDonald, the movie producers who once ran DreamWorks studios.

Here’s the release:

VEVO PARTNERS WITH ABU DHABI MEDIA COMPANY

Abu Dhabi Media Company Joins Universal Music Group and Sony Music Entertainment
for World Class Online Premium Music Service

New York, New York, Monday, October 19, 2009…VEVO, the new premium music video and entertainment service powered by YouTube, has received a strategic investment from Abu Dhabi Media Company (ADMC), one of the world’s fastest growing, multi-platform media organizations. The announcement was made today by Doug Morris, Chairman & CEO of Universal Music Group and Co-Chairman/Founder of VEVO, Rolf Schmidt-Holtz, Chief Executive Officer of Sony Music Entertainment & Co-Chairman of VEVO, Rio Caraeff, President & Chief Executive Officer of VEVO, H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, and Edward Borgerding, Chief Executive Officer of ADMC. Terms of the agreement were not disclosed.

With this transaction, VEVO is now formed as an independent and fully funded entity with Universal Music Group (UMG), Sony Music Entertainment (SME) and Abu Dhabi Media Company (ADMC) as founding shareholders. Funding from the shareholders will enable VEVO to come to market with an attractive premium music offering for consumers and advertisers alike.

Launching in the United States and Canada later this year with a further international roadmap to be announced, VEVO will be a premium destination and syndication network for the very best in top-notch music video content that will leverage the massive existing traffic of YouTube.

“This global partnership flags Abu Dhabi Media Company’s commitment to establish a leading position in the digital media industry. It is part of an integrated approach to expanding the global digital presence and brand portfolio of Abu Dhabi Media Company, and it illustrates our partnering approach with innovators in digital media services and technologies”, stated H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, on joining UMG and SME to create VEVO.

“It’s a credit to the music community, and to the global opportunity that VEVO represents, that we have been able to attract such a solid investment partner with the vision and track record of Abu Dhabi Media Company,” commented Rio Caraeff, President & Chief Executive Officer of VEVO. “Abu Dhabi Media Company brings to the venture important funding support and a team with enormous global media experience and insight, and we look forward to working with them to seize the many opportunities ahead of us.”

“Consumer demand for music video entertainment is growing significantly today and is transforming the digital entertainment market and the music industry by fuelling new media business models. VEVO fits our vision and goals perfectly, as we are expanding our capabilities and continue to build the market for digital entertainment around the world.  VEVO will redefine the way premium music video entertainment is consumed, created and shared in a global community of music audiences,” said Edward Borgerding, Chief Executive Officer of Abu Dhabi Media Company

“We’re now entering a new exciting phase in the digital media industry in the region and we’re determined to be at the forefront of it”, added Ricky Ghai, ADMC’s Executive Director, Digital Group. “With VEVO there’s real opportunity for incredible growth, as both brand advertisers and consumers are looking for new premium video experiences online.”

First the company gave us CADIE (Cognitive Autoheuristic Distributed-Intelligence Entity), an “artificial intelligence” tasked-array system with the personality of a 12-year-old girl and accompanied by its own homepage, YouTube channel, blog, monograph and versions of Google Earth and Google Maps. And to these, Google has added Google LOLCODE, Google Brain Search, Google Chrome with 3-D and a new Gmail auto-reply feature. The search giant also announced a new upside-down viewing option for YouTube and an automatic red-eye function for Picasa.

Overkill? Maybe, just a little. Google (GOOG), of course, wasn’t alone in pumping the Web full of pranks. Seems people with Web sites everywhere fancy themselves Don Rickles today. Hotels.com began taking reservations for rooms on the Moon. And Expedia (EXPE) began offering flights to Mars. Microsoft (MSFT) renamed its Kumo search product Omuk and unveiled Alpine Legend for Xbox 360. Some angry librarians staged a Kindle burning in a Los Angeles park. Ashton Kutcher’s Katalyst Media appointed Gary Busey as Director of Human Resources. Torrent index The Pirate Bay partnered with the hopelessly litigious Warner Bros. The Guardian adopted an all-Twitter publishing model. Gizmodo was taken over by spam overlords. Amazon (AMZN) launched a brand new cloud-computing dirigible called Floating Amazon Cloud Environment, or FACE. Yahoo (YHOO) debuted an Ideological Search. And, finally, Qualcomm (QCOM) took convergence a bit too literally.

There are plenty of others, of course, far too many to mention here, and most of them unworthy of that mention in the first place. As Good Morning Silicon Valley aptly notes, “The sad fact is that pranks are like fireworks–once amateurs get to fiddling around with them, somebody’s going to end up lame.”

Partisans of these platforms can argue all day about which is better. But the competitors have some things in common. Windows computers and Apple Macintoshes can both display the same photos and office documents, and play the same MP3 songs and YouTube videos. BlackBerrys and Treos can receive the same emails and call the same phone numbers.

It isn’t perfect. There are some files that don’t play well across platforms. But most common content does.

Yet there’s another technology competition that doesn’t share content well and offers few, if any, benefits to consumers. It’s the fight among two groups of technology companies and movie studios to sell a successor to the DVD. Each has developed a new type of disc that has the ability to show movies in high definition. To my eye, the pictures they deliver are identical.

Neither of these competing new discs, called Blu-ray and HD-DVD, works in current DVD players. They require very expensive new players, and the new players can’t handle both new disc formats, only one or the other.

Adding to the annoyance: Some movie studios release movies only in one of the two formats. Paramount and Warner Brothers support both formats, but Universal supports only HD-DVD, and Disney, Fox and Sony only Blu-ray.

So, in order to be sure you can play any movie released as a high-definition disc, you would have to replace your old DVD player with two new, much costlier players. It would be like having to buy separate TV sets to watch different networks’ programs.

Now, however, one gutsy company, LG Electronics, of Korea, a longtime member of the Blu-ray camp, has broken ranks and introduced a new combo player that can handle three formats: Blu-ray, HD-DVD, and regular old DVDs. It’s called the BH100 Super Multi Blue.

I’ve tested this combo player and found that it plays both new formats, as well as regular DVDs, just fine. But it’s more expensive than most single-format players and has some serious limitations when navigating through the menus on HD-DVD titles. For now, I can only recommend it for serious videophiles with deep pockets, but I’m hoping it’s the start of a trend that will end the foolish war.

The BH100 costs $1,200. That’s vastly more expensive than the newest DVD players, which, for less than $100, can take a regular DVD and “upscale” it so it looks better on a high-definition set. But that $1,200 isn’t so outrageous if you compare it with the price of buying two separate Blu-ray and HD-DVD players, which can reach or exceed $1,000 total. And the new LG takes up only one input on your TV, occupies less space on your component shelf and requires just one remote control.

I tested the LG combo player on my high-definition TV with this year’s Oscar-winning best picture, “The Departed,” and with “Superman Returns,” each of which is available in both of the new formats, as well as on DVD.

All played perfectly. The picture looked great in both formats and was noticeably better than an upscaled DVD image, which the LG unit also can produce. The LG outputs both new formats in a high, but grossly overhyped, resolution called “1080p.”

But the BH100 did a much better job with the Blu-ray discs than with the HD-DVD titles. That’s because while the combo player can play HD-DVD movies perfectly, it can’t display the HD-DVD discs’ menus for selecting scenes or accessing special features.

These menus usually offer the title and a photo to identify a scene, and the title and/or a description of the special feature. But on the LG BH100, the HD-DVD menus have no pictures, titles, or descriptions and look nothing like the original. They only identify scenes by number and duration. That makes it hard to find, say, the deleted scenes from “The Departed,” or the documentaries on the Superman disc.

The BH100 was based on a Blu-ray-only player and lacks the special chips HD-DVD players use to display the menus properly. LG had to concoct its own rudimentary replacements for those menus. The company says a future combo model could include the chips and thus display the HD-DVD menus as well as it does the Blu-ray menus, but it hasn’t decided whether to make such a product.

One reason for that decision may be the competing approach to solving the stupid disc war. Warner Brothers is working on a combo disc, instead of a combo player. This disc would hold both the Blu-ray and HD-DVD versions of a movie, so you could pop it into whichever type of player you own.

Until the electronics and movie companies support universal high-definition players and/or universal high-definition discs, I don’t recommend that most people invest in either technology. Why prolong a war that’s bad for consumers?

Email me at mossberg@wsj.com. See video versions of my reviews at wsj.com/mossbergvideo.

Lots of new technologies claim to be transformative, productivity-enhancing and liberating. But only a few really live up to those claims. One of them is Wi-Fi, the wireless networking technology that has truly revolutionized the way people use the Internet.

With Wi-Fi, you can get online in any room of a home or office — not just the room where your wired Internet connection lives. And you can use the Internet in airports, coffee shops, hotel lobbies and lots of other places where it wasn’t possible before.

But like a lot of technologies, Wi-Fi has been changing so fast that confusion has crept in. A new version of Wi-Fi, generally known as draft-N, promises greater speed, greater range and standardization, but may not deliver any of those things. I’ve been testing some of this latest Wi-Fi gear, with mixed results.

Linksys draft-N router

Also like some other technologies, Wi-Fi adheres to standards set by a private engineering organization called the IEEE (Institute of Electrical and Electronics Engineers), in which representatives of interested companies participate.

The current version of Wi-Fi blessed by the IEEE is called G and has a maximum speed of 54 megabits per second. This G version of Wi-Fi, known to techies as 802.11g, is built into most wireless routers (which transmit and receive Wi-Fi signals) and most laptops.

Now, the IEEE is working on a new, faster standard called N. It promises much greater speeds, measured in the hundreds of megabits per second, and much better range. But certifying this N standard is taking forever, partly because of factionalism within the IEEE.

In the meantime, the marketplace has moved on. Last year, major makers of Wi-Fi routers, like Linksys and Belkin, brought out routers that used a major advance, called MIMO, expected to be in the eventual N standard. This technology uses multiple antennas to send and combine multiple data streams into one faster, longer-range signal.

Last year, I endorsed one of these MIMO products, Belkin’s Pre-N router, which was the only Wi-Fi router I ever tested that covered every corner of my home at decent speeds, even when I used laptops with only the older G technology built in.

Now, the Wi-Fi market has moved again. The major makers have all brought out what they call draft-N routers and cards for laptops that adhere to a draft of the coming N standard that the IEEE has passed. It’s probable, but not certain, that the final N standard likely to emerge next year will comply with this draft. Similar draft-N gear will be built into new laptops later this year.

The makers are claiming that the draft-N routers will have up to 12 times the speed and four times the range of G equipment when used with compatible laptop cards. Even if you are just using a laptop with a G receiver built in, the new routers can also improve speed and range, though more modestly.

Speed is nice, but even current G maximum speeds far exceed the speed of most home DSL or cable modem connections. What’s more important to most consumers is range, or more accurately, decent speed at longer ranges. The biggest Wi-Fi problem people face is dead spots or very slow connections in parts of their homes.

I tested the new Belkin draft-N router, called the Belkin N1, in my house and compared it with the Belkin Pre-N router I bought last year and have used ever since. The new router, which I placed in exactly the same spot as the old one, was easy to set up. It has lovely, large icons on the front that tell you if everything on your network is connected and working.

But the N1 didn’t perform any better, and in some cases did worse, than the old Belkin. This was true whether I was testing it on a Windows laptop or a Mac laptop, and whether I was using the Belkin N1 laptop card or just the built-in G radios in my test laptops. The new model covered my whole house, but so did the old one.

I also tried the Linksys draft-N router, called the WRT300N, which has an antenna array that makes it look like a radar station or a submarine conning tower. The company had to help me set it up, because I use a very fast Internet service called Verizon FIOS, which the router’s program doesn’t recognize. The Linksys proved much slower than the Belkin, though this may be because of a mismatch between its settings and my Verizon service, which is used by only a few hundred thousand homes in the U.S.

My unimpressive draft-N experience is confirmed by several, more extensive tests done by some magazines and Web sites, which showed the draft-N gear to be no big deal.

There are two other problems with the draft-N systems. The manufacturers aren’t promising to upgrade them to the final N standard when it emerges. And buying them will get more complicated in the coming months, because they will be offered in a range of speeds and even in two different frequencies.

I can’t recommend the draft-N equipment over the previous round of MIMO-equipped routers. They will likely be better than your G equipment, but so were last year’s models.

• Email me at mossberg@wsj.com.

Corrections & Amplifications:

A new, faster standard for Wi-Fi wireless network connections promises speeds measured in the hundreds of megabits per second. This column incorrectly says the new speeds would be in the hundreds of megabytes per second.