I would advise to consider open-source Video LAN. Please see:
Only please don't be confused. At first, it looks like a media player. In fact, this is a very universal piece of software: it does all kinds of conversions, transport, downloads, streaming of all kinds, filtering, playing, all of the above in all combinations. It can be used on many different platforms or in a multiplatform environment. It can be used as a ready-to-use application, as a library, or in combination. In fact, its documentation is quite complex, so don't expect that you can understand it all at once, but it is comprehensive, and you will find a lot of help in forums.
Get ready to dig into a complex (and maybe overcomplicated) command line interface. If you needed just a player, it might not worth the effort, but as you need streaming, this is the very it. Highly recommended and an enormous variety of situations.
You will find a .NET API wrapper of the library. Please see my past answer: Streaming music files in vb.net without WMP