World Wrestling Entertainment (WWE) Network has added a free tier to its streaming subscription video service to bring in new subscribers, reports Fox Business. The new tier was released via soft launch earlier this month to give non-subscribers a taste of the type of content they can expect from the premium video service. Wrestle Talk reports that many of the videos in the free tier are those that a viewer would fine on WWEs YouTube channel or on WWE.com. Once any bugs are worked out of the free tier, WWE Network will do an official launch. It isnt clear if or how this might impact the premium subscription service.

WWE co-president George Barrios talked about the free tier at the UBS Global TMT Conference December 9.

We think its a great experience for those fans who are not subscribers, which is great, Barrios said. We want to engage deeper with them, were going to give them the best short-form experience on this. Number two, we think if youre on the fence about becoming a subscriber, living in that environment will make the transition easier for you.

This could provide a much-needed boost to the WWE Networks subscription service which has been plagued with problems this year, ever since switching platforms to Endeavor Streaming. While the move was necessary and ultimately a positive change, it had a rocky start.

A new promotional video hypes some of the changes of the streaming service including a sleeker design, simpler navigation, improved search tools, pages for WWE superstars and new streaming features.

While WWE Network has not disclosed a lot of details about the free tier, it likely has limits on the content available, and it could be ad-supported. It will exist alongside the streaming channels premium tier which is currently available for $9.99 a month following a 30-day free trial. Subscribers, of course, get the ultimate fan experience which includes live pay-per-view events including WrestleMania, thousands of hours of on-demand programming, exclusive weekly access to in-ring premier shows like NXT, documentaries, replays of Raw and SmackDown LIVE episodes and more. The subscription service is available on all platforms including Xbox One, PS4, Apple TV, Android TV, Roku, Sony, iOS, Amazon FireTV and others.

Adding a free tier to attract potential subscribers could be valuable to WWE Network. Afterall, subscription revenue is an important part of the financial puzzle for WWE. At the end of the companys third quarter ended September 30, 2019, the company reported that WWE Network averaged 1.51 million paid subscribers. This represented a 9% decline in average paid subscribers. The company is estimating average paid subscribers of 1.43 million at the end of the fourth quarter, a 10% decline.

WWE, however, did see an increase in digital viewing. Through the end of September, digital video views increased 12% year-over-year to 25.6 billion. Hours watched grew 14% to 957 million hours on both digital and social platforms. Though the company doesnt specifically break out subscription revenue in their quarterly financials, for the third quarter, media revenue was $146.1 million, compared to $142.1 million for the same period last year.

Insider Take:

While WWE Network has lost subscribers in the last year, the company has experienced some challenges, particularly with the less-than-smooth transition from one streaming vendor to the next. Setting that aside, we think WWE Network has a solid model for niche OTT content. They have a dedicated, captive audience. By offering a free tier, WWE may be able to attract new subscribers or win back those who left during the rocky transition to a new vendor. Wed love to see the company turn things around and win back their rightful place in the ring as a worthy contender.