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Network coding permits to deploy distributed packet delivery algorithms that locally adapt to the network availability in media streaming applications. However, it may also increase delay and computational complexity if it is not implemented efficiently. We address here the effective placement of a limited number of nodes that implement randomized network coding in overlay networks, so that the goodput is kept high while the delay for decoding stays small in streaming applications. We first estimate the decoding delay at each client, which depends on the innovative rate in the network. This estimation permits to identify the nodes that have to perform coding in order to reduce the decoding delay. We then propose two iterative algorithms for selecting the nodes that should perform network coding. The first algorithm relies on the knowledge of the full network statistics. The second algorithm uses only local network statistics at each node. Simulation results show that large performance gains can be achieved with the selection of only a few network coding nodes. Moreover, the second algorithm performs very closely to the central estimation strategy, which demonstrates that the network coding nodes can be selected efficiently with help of a distributed innovative flow rate estimation solution. Our solution provides large gains in terms of throughput, delay, and video quality in realistic overlay networks when compared to methods that employ traditional streaming strategies as well as random network coding nodes selection algorithms.