In designing a video-on-demand system, one of the major challenges is how to reduce the client's waiting time maintaining the concurrently used channels. For this reason, the hybrid architectures which integrate the multicast streams with the unicast streams were suggested in order to improve channel efficiency in recent years. In combining multicast with unicast, the ways to group the channels together are important so that more clients can share the multicast transmission channels. This paper proposes a hybrid video-on-demand system which gathers the unicast and multicast transmission channels efficiently by using dynamic channel allocation architecture. The newly proposed architecture can reduce the average client's waiting time significantly. The numerical results demonstrate that the dynamic channel allocation architecture in some case (e.g., 100-channel and 10-video system at 0.5 requests/second) achieves performance gain of 551% compared to existing architecture. This paper presents procedure of channel release and reuse, performance analysis, and simulation results of the dynamic channel allocation architecture.