A hierarchical cached media distribution system that employs the Internet. The distribution system assures reliability and quality of service in delivery of timely content. New content is harvested from multiple disparate sources, associated with channels, and encrypted, conditioned, and packaged prior to distribution. A peer-to-peer network scheme is provided where peer groups are associated and maintained for efficient file distribution. Content servers are dynamically prioritized based on availability and cost. A push-based distribution method may be used to exploit cached content stored on peers subject to network address translation (NAT). The distribution system exploits a redundant self repairing packaged file format for media content. Embodiments of the present invention further provide dynamic feedback to content sources.