A “Media Sharer” operates within peer-to-peer (P2P) networks to provide a dynamic peer-driven system for streaming high quality multimedia content, such as a video-on-demand (VoD) service, to participating peers while minimizing server bandwidth requirements. In general, the Media Sharer provides a peer-assisted framework wherein participating peers assist the server in delivering on-demand media content to other peers. Participating peers cooperate to provide at least the same quality media delivery service as a pure server-client media distribution. However, given this peer cooperation, many more peers can be served with relatively little increase in server bandwidth requirements. Further, each peer limits its assistance to redistributing only portions of the media content that it also receiving. Peer upload bandwidth for redistribution is determined as a function of surplus peer upload capacity and content need of neighboring peers, with earlier arriving peers uploading content to later arriving peers.