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The recent era of computing has paved a significant path for dramatic growth of multimedia services. Video-on-Demand (VoD) system is one such multimedia service that allows a viewer to choose video of their choice on an adhoc basis. The videos are delivered to user in real time via a network. This paper tries to optimize the performance of VoD system by proposing an efficient video streaming architecture. The architecture is designed carefully to select videos of various popularity and intelligently allocating resources between intermediate servers and the main multimedia server. Simulation results demonstrate the efficacy of the proposed architecture.