Abstract: An efficient proxy-caching scheme is presented to minimize network bandwidth utilization of proxy-based distributed VOD system. Furthermore, a global trial technique is developed to seek optimal proxy-caching allocation for various popular video shows. Combining the proxy-caching scheme with traditional show scheduling schemes the effects of the choice policy of cache allocation and proxy cache size on the total transmission cost are explored quantitatively. The caching scheme is thus proved to be effective and practical for server design to provide on-line video show allocations.