That is a very big and complex project.
You would need to take a look at the
Real Time Streaming Protocol (RTSP)[
^] and implement it. (See also:
MS RTSP document[
^])
You would be much better taking a look at one of the many
existing implementations[
^] available and consider using one of them. In particular, FFMPEG has a public API that you could probably use to set up the streaming server from your C# application. There are even a few C# wrappers around the FFMPEG api if you Google.