Wednesday, September 26, 2012

Barnes & Noble, Inc. (NYSE:BKS) To Release Video Service For Nook, shares Fell

Barnes & Noble, Inc.(NYSE:BKS) is releasing a video streaming and download service this autumn for its Nook e-books business as a latest move in its war against Amazon.

Barnes & Noble is the largest US bookstore chain. It said on Tuesday that the Nook video service will let shoppers purchase television shows and movies from Time Warner’s HBO, Viacom, Walt Disney Studios and Sony Pictures Home Entertainment. It will declare other studio collaborations soon.

The firm, whose Nook e-readers and tablets are going good with shoppers, is experiencing intense competition from Amazon, which already offers Prime Instant Video Service providing videos for purchase and manufacturing Kindle Fire tablet.

Will BKS Rebound After The Recent Slump? Find out Here

Amazon also has a subscription service related to Prime that offers two-day shopping service at free of cost within the US and is priced at $79 a year.

Earlier this month, Amazon had signed a three-year contract with Hollywood studio Epix. It is supposed to add thousands of movies to video streaming library of Amazon.

Adding videos is important for the Nook devices to cope up with the Kindle devices of Amazon. Customers shop not only for books and entertainment but also for a wide collection of products available on Amazon’s website. That gives Amazon a massive advantage over Barnes & Noble.

James McQuivey, an analyst at Forrester Research said in an interview that Barnes & Noble will eventually have to sell everything to make their gadgets ready for action. McQuivey thinks that the Nook devices of Barnes & Noble are better than Kindles in several aspects. Nooks have let the bookseller to win 30% of the US e-books market, as per its own estimates.

The Nook Video service will be launched this autumn. Videos are streamed and downloaded from Barnes & Noble store will be saved in the Nook Cloud. Video content can be enjoyed on Nook devices and also on other devices as soon as Barnes & Noble releases a free application.

How Shares of BKS fell about 1% in Tuesday’s session.

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