Reports claim the new service will distribute over 10,000 television programs via a membership-only web site, at a price of 100 yen each.
The company is thought to be aiming for sales of 10bn yen ($90m) a year.
The move comes as media companies are increasingly looking to exploit the internet to generate new advertising revenues. Web giants Yahoo! and Google recently launched rival video search engines in a bid to capitalize on the market.
Nippon is hoping the new service will enable it to compete with rivals Fuji TV, which has released its own online program, and telecoms group Usen Broad Networks, which is planning to offer a free video service.
