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Video streaming is becoming more and more popular with widely used hybrid networks. The prime challenge of such applications is to deal with varying transmission bandwidth. This paper proposes a block-based fine granularity scalable (FGS) coding structure, which is a more flexible scalable video coding structure supporting content-aware streaming compared with the MPEG-4 FGS coding structure. The streaming server can conveniently implement content-aware rate allocation or content-based selective enhancement dynamically through user's interaction with the proposed scalable coding structure. Thus the streaming server can have a differentiated delivery strategy according to user's preference. However the uniform rate allocation for bit-stream truncation of the proposed block-based FGS will result in more than 2dB loss by PSNR compared with MPEG-4 FGS within quite a wide range of bit rates. A fast optimal rate allocation method is also proposed to solve this problem in this paper. The coding efficiency is improved, which can be comparable with MPEG-4 FGS coding and is even better (0.5dB) with some sequences at some bit rates.