A method and apparatus for allocating bandwidth within a bandwidth constrained interactive information distribution system. The system determined if a requested information stream may be provided to a requesting subscriber at an appropriate bandwidth level (i.e., appropriate bitrate providing full quality), a minimal bandwidth level (i.e., a reduced bitrate providing minimally acceptable quality) or not at all. Each information stream and any ancillary streams may be stored twice by the system, once at an appropriate encoded bitrate and once at a minimal encoded bitrate.

 
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