The latest offering from the New York-based retailer is slated to premiere this fall with movies and TV shows from major studios including HBO, Starz, Sony Pictures, Viacom (NASDAQ:VIA), Warner Bros and Walt Disney Studios (NYSE:DIS).
Barnes & Noble also noted it is planning to make available content from other studios, but did not specify on a date.
"Our Nook Video service will give customers another way to be entertained with a vast and growing digital video collection, as part of our expansive Nook Store," chief executive William Lynch said in a statement.
Barnes & Noble said the service will be available in the U.S. by fall, and be introduced in the U.K. this coming holiday season.
The films that can be streamed and downloaded will include Toy Story 3, The Avengers, and 21 Jump Street, among other, while its TV offerings will include Breaking Bad, Dora the Explorer and the Walking Dead.
These shows and videos from the Nook store will be stored in the Nook Cloud, the company said.
Users will be able to view them on Barnes & Noble's Nook tablets and other devices with the Nook Video app, which the company plans to launch soon.
Shares of the company still lost 2.20 per cent to $12.45 each on the New York Stock Exchange this afternoon.
In late August, the company trimmed its net losses for its fiscal first-quarter amid sales growth due to strong sales of "Fifty Shades of Grey."
The book seller narrowed its net loss to $40.9 million, or 78 cents per share, compared with a loss of $56.6 million, or 99 cents per share, a year-earlier.
Revenue edged up to $1.45 billion from $1.41 billion.