Japanese car owners will shortly be able to subscribe to an in-car multimedia service that offers video, music, Internet and navigation systems.

Three Japanese companies, Toshiba, Toyota and Fujitsu, have joined together to set up Nihon Mobile Broadcasting Corporation, which plans to start nationwide broadcasts of multi-channel programming and information by 2001.

Drivers and passengers in vehicles will be able to navigate, watch videos, listen to CD-quality music and tap into the Internet by subscribing to NMBC's multi-channel services.

Although there are likely to be safety issues to overcome, the companies are forecasting two million subscribers by 2003 and 10 million by 2010. In-car TVs are relatively common in Japan while navigation systems are a large and growing market. The 2 1/2 million units already installed are forecast to rise to six million in 2000.

The venture represents an attempt by the companies to expand the multimedia market to the 70 million vehicles on the road in Japan. In particular, Toyota, Japan's largest carmaker, has said it intends to build up its information technology interests to make up for slowing growth in its car market. It has already been providing information services to users of its car navigation system.

Fujitsu and Toshiba, two of Japan's leading information and communications technology companies, will provide expertise in developing the semiconductor technology and infrastructure needed to broadcast the new services. The new company will use the S-band frequency, which allows aerials to be more compact than those of home systems.

Code-division multiplex technology will be used to enable moving vehicles to receive signals broadcast by satellite. The service is expected to offer between 30 and 80 channels of video and audio.

It is is expected to be used as part of an intelligent transport system including computerised toll payments.

The terminal is likely to cost between Y150,000 and Y200,000 (£820 and £1,070), but subscription fees have yet to be determined.