A method of and apparatus for efficiently providing video on demand services to a cable television subscriber. The provider system consists of two major subsystems. The first subsystem, called a video server, streams video to video on demand subscribers through the cable television network. The second subsystem, called the transaction server, performs virtually all remaining provider functions including, security, accounting, storage and spooling of video data, etc. The transaction server preferably uses a large scale mainframe computer. The video server subsystem may be a partitioned portion of same large scale mainframe computer.