Barnes & Noble will update its year-old e-book reader, the $199 Nook Color, to offer online features that further blur the lines between tablet computers and e-readers.

According to its press release today, the company is releasing a free software update that will allow the B&N Nook Color to access Netflix and Flixster streaming-video services. New digital book offerings will also include a Nook Comics app to access the library of graphic novels from Marvel.

Access to online streaming media will certainly add to the color e-reader's distinction—which outwardly appears similar to its pricier $249 B&N Nook Tablet sibling—among competing e-book readers which are mainly monochromatic. Moreover, with digital video added to its other "apps," such as various games, the Nook Color e-reader could provide an interesting alternative to tablet computers, such as the $199 Amazon Kindle Fire.

For help on deciding between e-book readers and tablets, see Consumer Reports free online buying guides for e-readers and for tablet computers. Top performing models can be found in our Ratings of tablet computers and Ratings of e-book readers.

B&N Nook Color updated [Barnes & Noble press release]
Barnes & Noble Updates The Year-Old Nook Color, Adds Netflix, Flixster And More [TechCrunch]