Microsoft will start testing Soapbox in September, and the service is expected to be available within six months on MSN Video.
Microsoft says that the Soapbox site offers single-step uploading, background server-side video processing, and acceptance of all major digital video formats.
Viewers can browse through 15 categories, find related videos, subscribe to RSS feeds, and share their favorites without interrupting the video they are watching.
Compared to the standalone YouTube, Microsoft plans to integrate Soapbox with its online services, such as Windows Live Spaces and Windows Live Messenger.
