PERSONAL DIGITAL CONTENT SYSTEM

An Internet-enabled means of distributing entertainment programming with embedded advertising in which the entertainment programming is customized according to consumers' stated preferences and the advertising is customized according to consumer demographics and also according to consumers' stated preferences. A computing system usable to create and distribute personalized entertainment and advertising content comprising computer hosts having software agents acting to administer a master digital library as well as end users' digital libraries, establish advertising bookings and insert advertising content, establish schedules of digital content for distribution to end users, identify digital content listed on a schedule but missing from the end user's digital library, distribute across a communications network digital content to end users, and decrypt and play or display the digital entertainment and advertising content. A communications network for exchanging information and data among said computer hosts and agents.