Abstract. This article proposes a hierarchical architecture for an infrastructure-based overlay network delivering multicast services. Such an overlay network is an alternative to IP multicast when the latter cannot be timely deployed for technical or business reasons. To make the overlay network scalable in terms of coverage and traffic volume, we propose a hierarchical architecture in which edge overlay routers are responsible for handing traffic to/from the end users, whereas core overlay routers handle transit traffic and perform the bulk of packet replication. We compare the hierarchical architecture to a flat architecture in which (edge) overlay routers are connected in a full mesh. We develop an asymptotic analysis to quantify the cost (in terms of additional required switching) and benefits of the hierarchical architecture over the flat architecture.