Microsoft has released its latest version of MSN Video that lets users find clips from more than 40 video content providers.

The new version adds community sharing features and introduces new time-based advertising.

Consumers can use the service to search for video across the content providers, including Soapbox's user-generated content, as well as the web. Video can now be viewed as users are searching for the next clip.

MSN Video users are now able to create playlists of their favorite videos and share them with friends.

The advertising now works on the amount of time a viewer spends watching videos, instead of by the number of clips watched.

Microsoft claims this improvement will provide a more predictable viewing experience and enable people to "channel surf" without being interrupted.

Users will see pre-roll ads before the first video and then see additional ads once every three minutes during their viewing session.

The new version of MSN Video has launched in the US, and is available in beta in 10 other markets worldwide.