New Q1 data from Synergy Research Group shows that Cisco has extended the lead over its main video infrastructure software rivals Nagra, Arris, Rovi and Irdeto.

While total quarterly revenues fell 4% on a sequential basis, Cisco revenues were essentially flat enabling it to grow its market share to almost 21%. The biggest annual revenue growth was achieved by Arris thanks to its acquisition of Motorola Home last year – while the total market grew 5% year-on-year, Arris revenues grew more than eight-fold.

On a rolling four-quarterly basis, total video infrastructure software revenues comfortably exceeded $5 billion. Some software segments continue to grow at double-digit growth rates.

“The way that customers consume video continues to change dramatically and this is having some profound effects on the whole video ecosystem” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group.

“While set-top boxes and relatively monolithic electronic programme guides once ruled the market, we’re now moving rapidly towards more flexible cloud and software oriented business models. Hardware revenues still far outweigh software revenues, but increasingly it is software that is driving the market.”