Microsoft on Tuesday launched a video-sharing service that would challenge the popular YouTube in the fast-growing market for online amateur and professional video.

In launching Soapbox, Microsoft has its eye on the success of YouTube, which from January to June grew 297 percent to a monthly unique audience of 19.6 million, according to Nielsen/NetRatings. Key to YouTube's success has been the ability for registered users to upload video and share it with friends.

"Microsoft is jumping on the bandwagon without knowing where it's going, but confident that it needs to be onboard," Joe Wilcox, analyst for JupiterResearch said.

The mystery for sites like YouTube, and now Soapbox, is in making money. While attaching advertising to video sharing is an obvious choice, such a move could offend users, which tend to be teenagers and young adults, and drive them to competitors. Other issues include copyright violations.