In this paper, we provide a design of DAVIC VOD service system with proxy servers which perform caching of video streams. Proxy servers are placed between a service provider system and service consumer systems. They provide video services to consumers on behalf of the service provider, therefore they reduce the loads of service providers and network. The operation of a proxy server depends on whether the requested program is in its storage. If this is the case, the prosy servere takes all the controls, but if the proxy does not have the program, it forwards the service request the proxy server takes all the controls, but if the prosy does not have the program, it forwards the service request to a service provider. While the service provider system provides the program to the consumer, the proxy copies and caches the program. The proxy server executes cache replacement, if necessary. We show by simultion that the LFU is the most efficiency caching replacement algorithm among the typical algorithms such as LRU, LFU, FIFO.