Instead of waking up to a new streaming media service from Microsoft this weekend, eager users will have to wait a week or so after it emerged the ambitious launch has been delayed.

According to The Telegraph, the Spotify rival was due to go live at the end of July, but problems with setting up the free service have pushed that back by at least a week.

Advertising funded

While not much is known about the MSN-branded service, it will feature both music and video and will be supported by advertising.

MSN Executive Producer Peter Bale admitted he was still trying to work out the details: "We are looking at how other similar businesses have structured their business models and trying to figure out what will work best for both consumer and Microsoft."