There is provided a system and method of contents distribution, which realizes an efficient use of the memory resources within a contents distribution apparatus and the communication resources on the part of a terminal device. A content storage section (11) stores contents such as video data and information concerning predetermined special effects to be applied thereto in pairs. A content management data setting section (12) sets information such as reproduction conditions, billing conditions, and a special effects flag with respect to each content. A distribution content storage section (13) stores the contents and information associated therewith. A distribution content selection section (14) selects information to be appended to a content for transmission in accordance with processing ability information which is supplied from a terminal device (2). The content and the selected information are transmitted to the terminal device (2) via transmission/reception sections (15, 21) and a network (3), so as to be stored in a distribution content storage section (22). A reproduction control section (23) reproduces the content according to the presence or absence of the special effects flag in the stored information.