Background and Challenge

A leading American video game publisher needed a strategy to enter the eSports over-the-top (OTT) segment with a direct-to-consumer offering. The company had premier gaming franchises but little experience in OTT video.  

The company enlisted L.E.K. Consulting to develop the business case for its proposed OTT service and create a sound operational plan to execute.

Approach and Recommendations

We created a market-size assessment of an eSports-focused OTT network. We used research on eSports fan profiles and behaviors to segment that market. We benchmarked OTT leaders’ strategies and revenues. We dove deep to understand competitor best practices and where others tripped up. To calibrate whether the market had the capacity for new entrants, we analyzed the current competitive landscape, including emerging players’ key investments in eSports content.

After conducting a detailed market assessment, we established how the client could successfully launch a direct-to-consumer offering. We evaluated several proposed content ideas for the OTT product. To establish the appropriate pricing, we analyzed pricing models, tiering mechanisms and common OTT platform features. 

We worked with the client to create a realistic financial model based on our analyses of services. We also outlined the ideal organizational structure for a dedicated OTT division. Finally, we created a customized strategy to effectively gain more registered and paying consumers.  


With our help, the client was able to further define and quantify the eSports OTT opportunity and create a product fit for the market. The company now has a long-term financial and strategic plan for its eSports-focused OTT service. This gave the client the confidence to move forward to the next phase of launch.

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