UPDATE 1-Redbox files suit against Warner Home Video

* Redbox sues Warner Home Video over distribution terms

* Says to keep offering customers Warner videos

NEW YORK, Aug 19 - Coinstar Inc's Redbox Automated Retail said on Wednesday it filed suit against Warner Home Video in response to new distribution terms the Time Warner Inc unit has imposed on Redbox.

DVD kiosk leader Redbox said it filed the suit in Delaware federal court on Tuesday to dispute Warner Home Video terms that prohibit Redbox from providing consumers with Warner Home Video titles until at least 28 days after public release.

Redbox, which has been battling multiple video providers over its DVD distribution service, said it would continue to offer consumers access to all major new releases, including those from Warner Home Video.

Redbox had previously said a U.S. district court had denied a motion by Universal Studios Home Entertainment to dismiss Redbox's antitrust case. Universal is 80 percent owned by General Electric Co and 20 percent by Vivendi.

Redbox, which rents DVDs from more than 17,0000 bright red automated kiosks at grocery stores and other retailers across the United States, signed a multiyear distribution deal with Lions Gate Entertainment Corp after reaching a similar pact with Sony Corp affiliate Sony Pictures Home Entertainment in July.