One of the problems faced frequently by users in Video-on-Demand (VoD) streaming, is a long waiting time for multimedia streaming.  In Existing System, a network coding equivalent content distribution (NCECD) scheme [Yung-Cheng Kao, Chung-Nan Lee, Peng-Jung and Hui-Hsiang Kao,2012] is used to handle interactive video-on-demand (VoD) operations in peer-to-peer systems. Using  NCECD, videos are divided into equal sized segments that are then further divided into blocks. These blocks are encoded into independent blocks that are distributed to different peers for local storage. By this, a new client only needs to connect to a sufficient number of parent peers and able to view the whole video, and rarely needs to find new parents when performing random access operations.The proposed work focuses on Fibonacci Based Content Distribution (FBCD) scheme to efficiently handle interactive VoD operations in distributed systems. In FBCD, videos are divided into n number of variable size chunks. The chunk size is progressively increased to reduce delay improve performance and reduce the loading time.  Since the video data is divided into chunks and stored at peers’ local storage in a distributed manner, a peer can discover and access a neighbour quickly through the middleware. The streaming processes are handled by the middleware system. The middleware will monitor all the distribution server loads and client request. This may not allow direct communication between Client and Server and Server offline problem is also managed. The proposed scheme achieves low start-up and jump searching delays and requires fewer server resources.