iTVP is a system built for delivery of live TV programming, video-on-demand and audio-on-demand with interactive access over IP networks. It has a nationwide range and is designed to provide service to a high number of concurrent users. Hence, scalability is one of the most important issues. In this paper we described how scalability is achieved in a two-level hierarchical architecture of the delivery system. We present the principles of content caching mechanisms and the management of the resulting distributed content repository. The system is implemented and currently operates in a test installation. Although the range of the test system operations is limited, as far as the number of users and the size of the content repository is concerned, the experience gained with iTVP so far provides an insight into the expected prototype performance. We present a system performance evaluation and describe the experience gained during the iGrid demonstration.