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The advances in the filed of Computer Science, Multimedia and Communication technology have paved a way for increase in the number multimedia services and applications. One such exiting multimedia service's that is currently gaining popularity across the world is Video-on-Demand (VoD) System. However, VoD is becoming costly due to the load placed on the servers. With number of users increasing, the load on the servers may proportionally increase, network may get congested and t h e performance of the system gradually degrades. In this regard, the paper focuses on architectural solution for improving the performance of the VoD systems.