The service, which was unveiled last month, was expected to launch at the end of July, offering web users the ability to stream tracks for free or download them for a charge.
However, a Microsoft spokesperson told The Telegraph: "In the coming months, MSN [Microsoft's news and entertainment portal] is planning a new music service in beta via its [MSN] 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".
Hardly any details about how the service would work were released, but Microsoft did liken it to Spotify.
Spotify is a free-to-use service that plays tracks peppered with adverts just like commercial radio. However, for a £9.99 monthly subscription, users can enjoy ad-free listening. It also allows users to create 'collaborative' playlists, which are assigned their own web addresses, and can then be added to by other Spotify listeners.