Mark Greenhalgh, pictured alongside one of the taxi screens
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Every new black cab in Scotland could be fitted with televisions showing news, adverts and short Scottish films.
The flat screen technology will be offered due to a deal between Cabtivate Media and John Paton Group, Scotland's sole distributor of new hackneys.
Owners choosing to have the system could save £10,700 on the cost of a new cab as income generated can be offset against the cost of a taxi.
The scheme has been trialled in 30 Edinburgh taxis over the past year.
Every new black cab in Scotland is put on the road by Glasgow-based Patons. Under the new deal the firm will also install and distribute the Cabtivate system with the content updated remotely using wireless technology.
Following the successful trial in Edinburgh, Cabtivate will roll out the new technology in about 300 more Edinburgh cabs over the next three years.
It has also won approval from licensing bosses in Glasgow to begin introducing the system in more than 300 Glasgow cabs from March 2005.
'Good news'
The first cabs involved in the deal will take to the streets from 1 March.
More owners are expected to invest in new vehicles to take advantage of the new system.
Roy McMaster, head of sales and marketing with Patons, said: "This system is excellent for our customers who are the taxi owners and drivers because they see a financial benefit.
"However, in a wider sense it is also an added benefit for taxi users and anything which makes the fare-paying passenger's journey more enjoyable can only be good news.
"Modern taxis are impressive, precision-engineered vehicles and this is yet another way in which they are being constantly updated. It gives a fresh, new, modern approach to cabs and we are delighted to be a part of it."
'Real benefits'
Mark Greenhalgh, managing director of Edinburgh-based Cabtivate Media, said: "Everybody sees real benefits as a result of this agreement and that is what makes it such an important piece of business which will take the whole Cabtivate concept to a new level."
The system's content can be updated without any need to disturb or distract the driver.
A number of advertisers already use the system and Cabtivate is in negotiation with a global entertainment news specialist as well as Scotland-wide broadcasters to provide additional content, including news, weather and local information.
Last month the firm also won the backing of Scottish Screen by offering a platform to show work by talented new film-makers.
It will consider hundreds of short films and screen the best in taxis for up to a month at a time - reaching thousands of viewers, including influential media figures.