New Q4 data from Synergy Research Group shows that headend-oriented software is accounting for an ever-larger share of video infrastructure software revenues, while content protection share of the market is declining.

In 2014, headend software made up 43% of total revenues, compared with just 32% three years ago. Content security share of the market declined by an equivalent amount while client software share of the market is holding steady at around 22%. In the battle for leadership of the high-growth headend software market, Cisco, Ericsson and Rovi are closely matched with each accounting for 10%-11% of the total, followed by Arris and Accenture.

Video Infrastructure Software market

Total spend on video infrastructure software grew by 6% in 2014, with the headend software segment growing by 14% while content security declined somewhat. Headend software includes sub-segments such as headend middleware, content management systems, advanced advertising, search & recommendation, analytics, cloud PVR and TV everywhere.

“Trends in OTT, consumer expectations, video consumption patterns, TV and video business models and cloud-oriented technologies are all putting more emphasis on complex headend software,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group.

“We are seeing extremely high growth rates in some of the emerging product areas such as cloud PVR, TV everywhere and search & recommendation. This is opening up opportunities for relatively new players in the market, though the bulk of spending continues to gravitate towards the more traditional vendors that have a broad range of video products.”