UK company Photo-Me International plans to open ten booths in London and New York as part of a trial with US company musicmaker.com, an internet provider of licensed music.
Five kiosks will be sited in the US by 15 January and a further five in Europe by 15 February, Photo-Me said.
Customers will be able to compile their own CDs from a choice of betweem 5,000 and 10,000 songs in musicmaker.com's library.
"If both parties agree that the test is successful, it is envisaged that some 5,000 kiosks could be rolled out in a short timescale, with Photo-Me responsible for design, manufacture and installation," Photo-Me said.
Photo-Me also has plans for the US, where it will make standalone MP3 stations - which allow individual tracks and albums to be downloaded from the internet - for musicmaker.com.
Photo-Me's fortunes
The joint venture is the latest in Photo-Me's moves to revitalise the traditional photobooth, boosting their own profits at the same time.
Already, the UK operator aims to bring the internet to the UK's high streets and train stations.
The group believes that the internet could double the revenue of conventional booths and this belief has helped support its share price.
About 1,000 multimedia booths are to open from Spring 2000.
In the year to April, Photo-Me posted a 32% jump in profits to £20m. The strong results are widely attributed to the company's embrace of new technology, which is expected to continue to support profits.
Photo-Me profits jump to £20m
(17 Aug 99 | The Company File)
The BBC is not responsible for the content of external internet sites.
Microsoft trial mediator welcomed
Vodafone takeover battle heats up
Christmas turkey strike vote
NatWest bid timetable frozen
France faces EU action over electricity
Pace enters US cable heartland
Mannesmann fights back
Storehouse splits up Mothercare and Bhs
The rapid rise of Vodafone
The hidden shopping bills
Europe's top net stock
Safeway faces cash demand probe
Mitchell intervenes to help shipyard
New factory creates 500 jobs
Drugs company announces 300 jobs
BT speeds internet access
ICL creates 1,000 UK jobs
National Power splits in two
NTT to slash workforce
Scoot links up with Vivendi
New freedom for Post Office
Insolvent firms to get breathing space
Airtours profits jump 12%
Freeserve shares surge
LVMH buys UK auction house
Rover - a car firm's troubles