A system for determining an encoding rate for an MPEG based digital video information stream comprising: a service quality manager server comprising a processor configured to determine an encoding rate of a digital video information stream for a customer comprising a viewer of a cable system, and a historical usage database, wherein said processor is configured to: determine a level of resource allocation related to bandwidth on a shared transmission medium serving said customer; determine whether said customer is presently being provided with another digital video information stream in response to a previous video on-demand request from said customer; determine a minimum video quality encoding level associated with a customer service profile associated with said viewer; determine a tentative video encoding rate to use for said video on-demand request; query a historical usage database including how much bandwidth was requested, allocated, and granted for earlier requests, comprising information regarding when the system had to adjust the video encoding rate; ascertain whether said tentative encoding rate for said video on-demand request would create an allocation issue; if said allocation issue is likely to be created, check whether the customer service profile allows a lower video encoding rate, and if said lower video encoding rate is allowable, allocate said lower video encoding rate to the said digital video information stream; instruct an Encoder Manager to encode said digital video stream at the selected video encoding rate; provide authorization for a VOD Server, comprising a VOD Session manager, to provide said digital video information stream, wherein said digital video information stream is encoded at said encoding rate, and update said level of resource allocation commensurate with said encoding rate used to encode said MPEG based digital video information stream. a service quality manager server comprising a processor configured to determine an encoding rate of a digital video information stream for a customer comprising a viewer of a cable system, and a historical usage database, wherein said processor is configured to: determine a level of resource allocation related to bandwidth on a shared transmission medium serving said customer; determine whether said customer is presently being provided with another digital video information stream in response to a previous video on-demand request from said customer; determine a minimum video quality encoding level associated with a customer service profile associated with said viewer; determine a tentative video encoding rate to use for said video on-demand request; query a historical usage database including how much bandwidth was requested, allocated, and granted for earlier requests, comprising information regarding when the system had to adjust the video encoding rate; ascertain whether said tentative encoding rate for said video on-demand request would create an allocation issue; if said allocation issue is likely to be created, check whether the customer service profile allows a lower video encoding rate, and if said lower video encoding rate is allowable, allocate said lower video encoding rate to the said digital video information stream; instruct an Encoder Manager to encode said digital video stream at the selected video encoding rate; provide authorization for a VOD Server, comprising a VOD Session manager, to provide said digital video information stream, wherein said digital video information stream is encoded at said encoding rate, and update said level of resource allocation commensurate with said encoding rate used to encode said MPEG based digital video information stream. determine a level of resource allocation related to bandwidth on a shared transmission medium serving said customer; determine whether said customer is presently being provided with another digital video information stream in response to a previous video on-demand request from said customer; determine a minimum video quality encoding level associated with a customer service profile associated with said viewer; determine a tentative video encoding rate to use for said video on-demand request; query a historical usage database including how much bandwidth was requested, allocated, and granted for earlier requests, comprising information regarding when the system had to adjust the video encoding rate; ascertain whether said tentative encoding rate for said video on-demand request would create an allocation issue; if said allocation issue is likely to be created, check whether the customer service profile allows a lower video encoding rate, and if said lower video encoding rate is allowable, allocate said lower video encoding rate to the said digital video information stream; instruct an Encoder Manager to encode said digital video stream at the selected video encoding rate; provide authorization for a VOD Server, comprising a VOD Session manager, to provide said digital video information stream, wherein said digital video information stream is encoded at said encoding rate, and update said level of resource allocation commensurate with said encoding rate used to encode said MPEG based digital video information stream.