An adaptive Chunk algorithm is newly devised and a collaborative streaming is designed for high quality multimedia streaming service under time varying traffic conditions. An LMS based prediction filter is used to compensate the effect of time varying background traffic of the WAN. The underflow is generated for the $20~28\%$ of the data stored in the central server by applying the FARIMA(Fractional Autoregressive Integrated Moving Average) traffic modeling method. The proposed algorithm is tested with the MPEG-2 video files and compensates $71~85\%$ of central stream underflow.