Roku Launches “Howdy“: A New $2.99/Month Ad-Free Streaming Service Amidst Growth
Roku, a dominant player in connected TV, has launched Howdy, a new ad-free streaming service priced at $2.99 per month. This move signals a notable shift for the company, historically known for its free, ad-supported viewing model, as it expands its content offerings to a new audience.
Roku’s introduction of Howdy is a deliberate strategy to tap into the growing demand for ad-free entertainment. The platform promises an expansive library featuring approximately 10,000 hours of movies and television shows. Content partners include major studios like Lionsgate and Warner Bros. Finding, alongside FilmRise, and will also showcase Roku’s own exclusive programming, Roku Originals.
The new service, available nationwide, aims to broaden accessibility to beloved content. “Roku is making beloved content from our catalog accessible to an even bigger audience,” stated a representative from Radial Entertainment, FilmRise’s parent company.
Complementing, Not Competing: The “Howdy” Approach
this launch positions Howdy as a complementary offering rather than a direct competitor to existing premium streaming services. Roku founder and CEO Anthony Wood emphasized this point, noting, “Priced at less than a cup of coffee, Howdy is ad-free and designed to complement, not compete with, premium services.” This strategy could attract a segment of cord-cutters seeking affordable, high-quality, commercial-free entertainment.
The new service will operate alongside The Roku Channel, which will continue to offer free, ad-supported viewing. Howdy is initially accessible on the Roku platform, with plans for expansion to mobile and other devices in the future.
Building on a Foundation of Ad-Supported Success
Roku’s journey into streaming began with the launch of The Roku Channel in 2017, a free, ad-supported service that has seen substantial growth, mirroring the success of similar platforms like Paramount global’s pluto and Fox Corp.’s Tubi. This new venture into ad-free streaming represents an evolution of its business model, diversifying revenue streams.
Expanding Advertiser Reach Through Strategic Partnerships
In June, Roku solidified its market position by entering into a strategic partnership with Amazon Ads. This collaboration aims to enhance Roku’s appeal to advertisers by granting them access to an estimated 80 million U.S. households, including those using Roku and Amazon’s Fire TV devices. This move underscores Roku’s ambition to be a thorough advertising solution in the streaming landscape.
Strong Financial Performance Underpins Expansion
Roku’s recent financial reports highlight the company’s robust growth. The company announced second-quarter earnings exceeding expectations, with total revenue reaching $1.11 billion. Platform revenue
Explanation of Changes & Answers to Questions:
Why did Roku launch Howdy? Roku launched Howdy to tap into the growing demand for ad-free entertainment and diversify its revenue streams beyond its traditionally ad-supported model.
who is involved? Roku is the primary entity. Content partners include Lionsgate, Warner
