Microsoft is set to launch a rival to the BBC’s iPlayer, escalating the battle over how people watch television over the internet.

MSN Video Player will launch “within a week” in a publicly available trial version, Ashley Highfield, Microsoft’s UK Consumer and Online MD, told The Times.

Internet TV streaming is becoming increasingly popular as it allows viewers to watch TV programmes via their web browsing programs, such as Internet Explorer or Firefox. In the UK, the BBC iPlayer catch-up service has been remarkably successful, and now regularly deals with over 40 million programme requests per month.

Unlike the iPlayer, which is free of advertising and funded by the television licence, the MSN Video Player will be a commercial project. Half-hour programmes will be preceded by short commercials, while programmes of one hour or longer will be interrupted by a commercial break. The service will only be available to viewers in the UK.

At first, the Microsoft service will stream, like the iPlayer, using the Flash protocol. At full launch, MSN Video Player will use Microsoft’s own Silverlight technology rather than the more popular Apple-developed Quicktime. This means that the MSN Video Player will be unavailable to users of Apple’s iPod touch and iPhone. Given the rivalry between Apple and Microsoft, a YouTube-style app for the iPhone seems highly unlikely.

Thanks to the iPlayer, said Mr Highfield, “We now know that people are prepared to watch TV over IP [internet protocols] on their laptops; the next step is to see if it’s commercially viable.” He added that all available advertising had already been sold.

Mr Highfield was previously one of the key figures behind the BBC iPlayer. He joined Microsoft when a joint internet streaming venture between the BBC and commercial broadcasters was killed off by the Office of Fair Trading. Nevertheless, he refuted any suggestion that he was poached by Microsoft for his TV expertise. “I absolutely did not come here to do this. This is part of a range of services that I came to take on.”

At launch, the MSN Video Player will feature around 300 hours of programming drawn from the archives of BBC Worldwide, the commercial arm of the BBC, and All3Media, one of the UK’s leading content distributors.

“What we are offering,” Mr Highfield said, “is something we believe to be complementary to the iPlayers of this world. This is a post catch-up service for programmes that no longer feature on the BBC iPlayer.”

A spokeswoman for BBC Worldwide confirmed that all BBC programmes on MSN Video Player will be at least 180 days old. The choice of programmes will be aimed squarely at the 18 to 29 age group, and will include such series as The League of Gentlemen, Hustle, Dead Ringers and The Hitch-Hiker’s Guide to the Galaxy.

The pilot service will run for an initial six months, after which – if successful – the number of content partners and available programmes will increase.

Microsoft’s entry into TV streaming will come just over a month before the projected UK launch of Hulu, which is the most popular TV streaming service in the United States. Hulu's partners are thought to include Channel 4, ITV and the BBC. Hulu is a joint venture between Disney, NBC Universal and News Corporation, the parent company of The Times.

Microsoft's service will also face competition from a high-speed upgrade to the iPlayer, which the BBC is working on in conjunction with BT and ITV. Dubbed Canvas, it will allow programmes to be transmitted down the phone line at high speeds and viewed on a standard television via a specially adapted Freeview box.

Channel Five will today announce it has signed up to Canvas, meaning that Canvas has signed up three of the big four broadcasters, all of whom will offer programmes that are only a few days old -- while Microsoft is still battling to reach agreement with any commercial broadcaster. The Canvas service is due to launch next year, subject to approval from the BBC's governing body.

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