Microsoft announced last month that it was planning to launch a new music streaming service, originally planned for a July release.

We're now in August and Microsoft has delayed the planned launch of the service, amidst rumours that there are still no deals in place with the major music labels.

According to an unnamed source on TechCrunch Microsoft "has no label deals".

Service due 'in coming months'

When contacted about these rumours that music licensing deals were causing the hold-up to its music streaming service, a Microsoft UK rep told TechRadar:

"We don't have much detail to disclose on this subject but what we can share is that, in the coming months, MSN is planning a new music service in Beta via its Music channel in the UK.

"At this stage we won't be confirming the details behind this but more information will be available soon and will be communicated in due course."

The announcement is suitably vague about Microsoft's plans to launch its own 'Spotify-style' ad-funded music and video streaming service.

When contacted, a Spotify rep told TechRadar that they were aware of the delay in Microsoft's offering, but "wouldn't comment on other services, upcoming or otherwise."

MSN Executive Producer Peter Bale told The Telegraph over the weekend that Microsoft was "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."