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We propose a rank-based peer-selection mechanism for peer-to-peer media streaming systems. The mechanism provides incentives for cooperation through service differentiation. Contributors to the system are rewarded with flexibility and choice in peer selection, resulting in high quality streaming sessions. Free-riders are given limited options in peer selection, if any, and hence receive low quality streaming. Through simulation and wide-area measurement studies, we verify that the mechanism can provide near optimal streaming quality to the cooperative users until the bottleneck shifts from the sources to the network.