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In this paper, the effects of optical traffic-sharing on the performance of multicast video delivery in terms of the efficiency of bandwidth allocation and the fairness of link-sharing are discussed for the downstream direction of a time-division-multiplexed passive optical network (TDM-PON). We analyze the practical issues associated with multicast packet switching and transmission control in a TDM-PON and also propose a fair bandwidth allocation mechanism, called share-based proportional bandwidth allocation (S-PBA), to effectively support multicast services. In order to provide an optical network unit with a fair amount of link bandwidth and high throughput independent of traffic type, S-PBA arbitrates the amount of unicast timeslot by using effective multicast traffic share, which is determined based on multicast traffic load distribution and traffic-sharing density. Analytic and simulation results clearly validate the effectiveness of the proposed mechanism. This work is applicable to multicast video delivery or multicast traffic transmission in general, such as voice traffic, or a combination of both in the case of video conferencing, for example.