The service, understood to have been heading for a July launch, has been pushed back to an unspecified date.
A beta service is expected within months, although Microsoft has not given a date when it will go live.
Microsoft closed its digital download store in April and is yet to launch a replacement service (nma 1 April 2009).
MSN Video is to start streaming 300 hours of full-length shows distributed by BBC Worldwide including Peep Show and Shameless this week.
Microsoft was unavailable for comment.
This story first appeared on newmediaage.co.uk