It is determined that a substantial portion of set-top terminals connected to a video content network require a software upgrade. In-band video bandwidth (e.g., video-on-demand or switched digital video) is allocated for the software upgrade. The software upgrade is broadcast to the set-top terminals from a carousel in a first remote node of the video content network, via the allocated in-band video bandwidth, until a predetermined number of the set-top terminals have received the software upgrade. Subsequent to the predetermined number of set-top terminals receiving the software upgrade, the in-band video bandwidth is de-allocated and the software upgrade is made available out-of-band to the remaining portion of the set-top terminals, via individual sessions with an application server in a second remote node of the video content network. An exemplary system, which can implement the method, includes a controller, a dynamic bandwidth allocation device, the carousel, and the application server.