
Billed as a rival to YouTube, the service will offer unrestricted video content, in violation of copyright law.
It is not clear when the service will actually go live; the site's founders said "it will be done when it's done".
In April, a court in Sweden jailed four men behind The Pirate Bay and ordered them to pay $4.5m (£3m) in damages.
TBP founder, Peter Sunde, announced The Video Bay to the Open Video Conference in New York.
In a statement on the site, Mr Sunde said the service would use the latest HTML 5 features.
"More specifically the audio and video tags with the ogg/theora video and audio formats.