Microsoft is launching a free online video player - the first serious rival to the BBC’s iPlayer

The MSN video player, which goes live tomorrow, will feature a thousand hours of television programming that is aimed mainly at the youth market, young families and professionals.

Rather than providing a “catch-up” service like the iPlayer, where people can watch programmes for only a few days after they are aired, Microsoft says that it will allow viewers to enjoy full series of their favourite shows.

The new service features programmes including the cult comedy Peep Show, the teen drama Skins and the reality show Wife Swap.

The service is free, but viewers will have to watch single 30-second advertisements before, during and after the programme. The system is available only in the UK.

The system was launched by Ashley Highfield, Microsoft’s UK consumer and online managing director, who had been one of the key figures behind the development of the BBC’s iPlayer.

The iPlayer has been remarkably successful in Britain, regularly dealing with more than 40 million programme requests a month.

However, Mr Highfield insisted that Microsoft’s product, which has been in testing for the past six months, is superior to the iPlayer. “Not all video players are equal,” he said. “Our average viewer watches for 25 minutes, significantly higher than other online services. It shows we’re doing more than slapping on any programme for people to watch.”

The technology company has secured deals with a number of television studios and broadcasters such as Endemol, the maker of Big Brother; RDF Media, which created Location, Location, Location; and BBC Worldwide.

Microsoft is also in talks with some of the big film studios and believes that its new player will feature a suite of movies in the near future.

It claims that it may have solved one of the main bugbears with other online videos - pictures stuttering because of poor internet connections. Using the company’s Silverlight technology, the screen quality will adjust automatically according to the strength of the connection. However, those who do not download Silverlight will be able to watch programmes - an important concession to viewers, since many experts consider Silverlight to be a flawed and failed technology.

Microsoft’s move into internet video programming is set against in increasing battle over the medium. The BBC is awaiting a green light from its own regulatory body over a controversial web video service. Project Canvas, a joint venture between the BBC, ITV, Channel 4, Five, BT and Carphone Warehouse, aims to offer on-demand video over a broadband connection. It has been roundly attacked by BSkyB, the pay-TV operator that is 39 per cent-owned by News Corporation, parent company of The Times. Sky says that the service does not do anything that commercial rivals cannot provide. The satellite broadcaster has also launched a online video player, but it is available only to paying subscribers.