I don't know what caused the initial problem installing the service, but I found that the service, once installed, was trying to log on with the Local System Account. I changed that to the domain admin ID and password and it is now working as expected.

I did a clean install of MM on a Windows Server 2012 R2 server. Logged in as the domain administrator, selecting Install as Service generates the following error:

[SC] StartService: OpenService FAILED 1060:

The specified service does not exist as an installed service.

Nevertheless, the service appears in services.exe. It is set to start automatically, but initially it needs to manually started. The MM streaming library is visible in Nework Explorer under Media Devices. However, as soon as I close MM it disappears from there. In other words MM streaming is NOT running as a service.