One aim of this thesis is to provide an overview of technological, economic and legal aspects of the distribution of audiovisual content over internet and other IP networks. This thesis will provide introduction to most widely used compression methods of digital audio and video, transmission methods and protocols. Another aim is to create a case study that deals with selecting the best solution for a commercial project of Video On Demand server. This objective is achieved by applying methods of multi-criteria evaluation of options based on theoretical analysis of distribution solutions. The secondary aim is to determine the total cost of ownership of the different options by using the methodology of TCO (Total Cost of ownership). This thesi...