The recent advances & development of inexpensive computers & high speed networking technology have enabled the Video-on-Demand (VoD) application to connect to shared-computing services. VoD has important applications in entertainment, education, interactive news etc. The VoD application enables the viewer to select his favorite video from a list of videos, & watch it at will. The VoD system is designed to provide access to a large archive of multimedia documents. VoD is an Internet service with a growing appeal to the mass market & is of increasing importance to Internet service provider’s revenue. The critical parameters for VoD service are high quality video, low latency & low cost. The VoD application must provide long-lived video streams which consume resources such as buffer & network bandwidth to a large number clients. Therefore, a video server must secure the necessary resources for each stream during a long period of time, so that the clients can play the video without jitter or starvation. The objective is to design such a system offering good quality of service with low cost and low resource consumption.