The major drawback of the existing cluster placement scheme is the long response time caused by admission control if the number of clusters and the number of users are large. A circular skip-cluster placement scheme is proposed to reduce the size of the data buffer as well as the system response time. Furthermore, the popularity of each video is different in the real world. We propose a new popularitybased data allocation scheme to allocate data units within a cluster such that the corresponding data units of these popular videos are stored in those cylinders at one end of each cluster. Due to a higher spatial locality within these hot cylinders, some data units requested by the users are stored in the same cylinder such that one seek operation, one rotation, and one transfer operation are required to retrieve these data units. Therefore, the time required to retrieve data for these requests can be reduced, thus also reducing the system response time. Based on our results, the buffer size and the system response time can be reduced by half or more. These findings are essential for constructing video-on-demand systems that provide satisfactory performance.