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Recently a number of researchers have proposed and investigated new video-on-demand architectures that make use of network multicast to achieve vastly improved efficiency. Techniques such as batching, patching, periodic broadcasting, chaining, and piggybacking have been explored both in isolation and in combinations. This study investigates a new tool in the arsenal-channel folding, where aggressive client-side caching is used to merge clients from one multicast channel into the other. In particular, this channel folding algorithm is applied to a previously proposed unified video-on-demand (UVoD)) architecture to demonstrate and to quantify its impact on the performance and the tradeoff in a multicast video distribution architecture. This paper presents this channel folding algorithm in the context of UVoD) and derives a performance model to obtain the system latency, the near-optimal channel partition policy, and the client buffer requirement. Numerical results show that channel folding can double the capacity of UVoD) with a remarkably small overhead in the client buffer requirement.