Real time media distribution services such as live streaming and video on demand (VoD) have gained great popularity among users. Specifically, it has been noted that VoD generates a respectable percentage of the internet traffic. On the other hand major VoD service providers (i.e. youtube) are not scalable, and thus not profitable due to bandwidth costs. Additionally, their servers consume a vast amount of power. P2P video on demand offers a promising solution to this problem. In this work, an innovative distributed architecture is proposed, which optimally minimizes the idle upload bandwidth of participating peers and stabilizes video distribution in dynamic environments.