While Barnes & Noble?s two new Nook HD tablets offer some nice features, the retailer is going up against some significant competition in the space, with its success riding more on how well it can build a digital content business than on the devices themselves.

In addition to the new Nook tablets, Barnes & Noble also introduced the Nook Video service, providing access for the tablets to a collection of popular movies and TV shows. The news comes as the retailer faces increasing pressure on its bookselling business as consumers are increasingly consuming content in the digital form.

?B&N?s launch of the Nook Video service is a bold step toward going head-to-head with other companies that offer content-device-software ecosystems,? said Paul Verna, a senior analyst at eMarketer, New York.

?Only time will tell whether B&N?s gamble will pay off, but early indications about the company?s content partnerships prove that it?s serious about playing in this space,? he said. ?Although Apple, Amazon and Google are further along, we?ve seen how companies with leadership in digital content can falter.

?B&N has more to lose here because its entire business hinges on a successful transition from physical retail to digital content and digital commerce. The other companies I mentioned are already doing well with their core businesses, so if they don?t hit a home run in the digital content space they won?t be as exposed as B&N.?

Taking on Amazon
The new tablets are being well received, with analysts saying the Nook devices outperform the Kindle Fire on several specs thanks to their high-quality displays, fast performance and low weight.

Another advantage the Nook tablets may have over the Kindle Fire is significant retail exposure, now that Walmart and Target have both decided to drop the Kindle range but are stilling carrying the Nook line.

With Barnes & Noble likely not making much of a profit on the devices, the goal here is to drive sales of digital content as its customers? content consumption habits increasingly move away from print to digital.

However, Barnes & Noble lags behind Amazon on this front and needs to step up its game on the digital content side if it is to continue to play in this space.

A recent survey from Forrester Research found that 31 percent of U.S. online consumers say they have a credit card on file with Amazon, compared with only five percent who say the same of B&N.

?Even with the video store, B&N lags behind Amazon in giving consumers reasons to engage, especially with services like Cloud, Prime, and ecommerce beyond media,? said Sarah Rotman Epps, a senior analyst at Forrester Research, Cambridge, MA, in a blog post about the new tablets.

Keeping pace
The Nook HD is a 7-inch media tablet promising a high-resolution display that costs $199 for the 8GB model and $229 for the 16GB model. It weighs 11.1 ounces and is five-inches wide, making it more than 20 percent lighter and nearly a half-inch narrower than Kindle Fire HD.

Barnes & Noble claims the display for the Nook HD+ rivals leading high-resolution large-format tablets but in a device that weighs more than 20 percent less and costs nearly half the price. The Nook HD+ has a 9-inch screen for $269 in the 16GB model and $299 for 32GB.

The tablets are optimized to deliver best-in-class experiences in the areas that the company?s research shows Nook tablet owners are using the most: reading, Web browsing, streaming video and email.

Some of the features include the ability to set up profiles so that multiple users can share a device, with parents able to control what their children can access while adults can still easily access they content they want. Additionally, new free NOOK Video apps automatically sync so customers can pick up watching a video or reading a book right where they left off on another device.

Another new service is Nook Catalog, which enables users to browse and shop a selection of catalogs from leading retailers including Pottery Barn, L.L.Bean, Frontgate, Garnet Hill and Harry & David.

The new tablets will be available in early November.

?From a design standpoint, the Nook tablet is an attractive product with some differentiators from its closest competitor, the Kindle Fire, but overall Barnes & Noble is struggling to compete in the device and content market against companies that are in stronger positions, especially Apple, Amazon and Google,? Mr. Verna said.

?One of B&N?s biggest challenges on the device side is to keep pace with innovations from Apple and Amazon, which are a few steps ahead, while maintaining price competitiveness. The downward pricing pressures we?ve seen over the past several months indicate that this is a high-stakes game, and B&N is definitely the underdog,? he said.

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York