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We present a proxy-assisted video delivery architecture that can simultaneously reduce the resources requirements at the central server and the service latency experienced by clients (i.e., end users). Under the proposed video delivery architecture, we develop and analyze two novel proxy-assisted video streaming techniques for on-demand delivery of video objects to a large number of clients. By taking advantage of the resources available at the proxy servers, these techniques not only significantly reduce the central server and network resource requirements, but are also capable of providing near-instantaneous service to a large number of clients. We optimize the performance of our video streaming architecture by carefully selecting video delivery techniques for videos of various popularity and intelligently allocating resources between proxy servers and the central server. Through empirical studies, we demonstrate the efficacy of the proposed proxy-assisted video streaming techniques.