UPDATE 1-Warner to work with DVD kiosks, mail vendors

* Warner Home Video to work with kiosk, mail-order vendors

* Options include 28-day window for kiosk vendors

* Leading kiosk vendor Redbox says action will limit access

LOS ANGELES, Aug 13 (Reuters) - Time Warner Inc's (TWX.N) Warner Home Video said on Thursday it plans to deal directly from October with DVD rental kiosks and mail-order rental services, a move that may delay availability of its titles at kiosks operated by Coinstar's (CSTR.O) Redbox.

Warner did not name any companies. However, the president of Redbox said the action will limit timely access to new-release DVDs from Warner for that company's customers.

Hollywood accuses Redbox, which operates 17,000 bright-red rental kiosks across the country, of depressing DVD prices and depriving studios of the kinds of revenue-sharing options they now employ with traditional chains like Blockbuster.

Warner's action is the latest studio move to try to delay the availability of new releases to Redbox's popular kiosks around the country.

Leading mail-order subscription service Netflix will also evaluate the current proposal and discuss it with Warner Home Video, said company spokesman Ken Ross.

Warner said it will put different options on the table for kiosk and mail-order vendors.

For kiosks, the company will offer a 28-day option, making them wait nearly a month until its titles are available in stores. For mail-order vendors, the company will offer a day-and-date revenue-sharing option in order to get the DVD the same date it goes into retail stores.

"Redbox will continue to stand behind our customers and our commitment to providing convenient, affordable access to new release DVDs from all studios, including Warner Brothers," Mitch Lowe, president of Redbox, told Reuters in an email.

On Wednesday, Redbox sued News Corp's (NWSA.O) Twentieth Century Fox for trying to bar it from renting out films on the day of retail release.

Warner Home Video now lets its wholesalers work with kiosk and mail-order subscription vendors.

Netflix has had a direct relationship with Warner Bros for 10 years and has acquired content from them from a variety of programs, including direct acquisition and revenue sharing, said company spokesman Ross.

Warner Home Video also said it changed its wholesaler terms to prohibit them from buying and reselling previously viewed Warner Home Video products.

The company, the home video unit of Warner Bros Entertainment, has the largest distribution infrastructure in the global video marketplace.

The news comes as traditional rental chains such as Blockbuster have struggled to retain customers going to online and innovative services like Netflix and Redbox. (Reporting by Laura Isensee and Sue Zeidler; Editing by David Gregorio)