In this paper we present a new buffering technique that reduces Video-On-Demand server memory requirements in more than one order of magnitude. This technique, Per-Storage-Device Buffering (PSDB), is based on the allocation of a fixed number of buffers per storage device, as opposed to existing solutions based on per-stream buffering allocation. The combination of this technique with disk array servers is studied in detail, as well as the influence of Variable Bit Streams. We also present an interleaved data placement strategy, Constant Time Length Declustering, that results in optimal performance in the service of VBR streams. PSDB is evaluated by extensive simulation of a disk array server model that incorporates a simulation-based admission test.