JPEG 2000 is arguably the standard that is best suited for archiving images. The ability to encode lossless and lossy with a single codec is one of the great benefits of JPEG 2000 for archiving image data. Perhaps the greatest benefit that JPEG 2000 brings to this application is that the archival content can be easily retrieved from storage in a scalable, network friendly and efficient manner. Video is particularly demanding on network resources due to the high bandwidth required for most image sequences. Video can be very demanding on server resources if transcoding or storage of redundant data sets is required to serve clients of differing capabilities. The use of JPEG 2000 in archiving video can be particularly useful in efficiently managing and delivering content to various devices.Sony Broadband Application Laboratories have been investigating technologies that will be important for handling image data in networked environments. Recently we have developed a scalable delivery system based on a RTP JPEG2000 video stream format that has been proposed to IETF. This system can provide video delivery and Quality of Service from a single layered content for users who require different image quality / resolution / color depending on the device. In this paper we will review our continued investigations into developing and optimizing a video delivery system as follows:• Optimum allocation for scalability by considering client's capabilities (Display size, CPU performance, etc).• Minimum disk access by skipping unused packets fragmented by logical packets segment of JPEG2000 (Figure 1).• DynamicSNR rate control for variable network traffic between a server and clients.We have concluded that by optimizing data allocation, disk layout and rate control mechanism based on client interaction a powerful and efficient single source SNR / resolution scalable video delivery system can be realized.