Roku Launches Ad-Free Streaming Service Howdy for $2.99 Monthly

HASTINGS-ON-HUDSON, New York — Roku announced Tuesday the launch of Howdy, a new ad-free streaming service priced at $2.99 per month. This service marks a significant shift for Roku, which has traditionally offered free, ad-supported viewing.

Howdy aims to provide viewers with access to nearly 10,000 hours of movies and TV shows from prominent providers including Lionsgate and Warner Bros. Discovery. The service features exclusive programming titled Roku Originals. Beginning Tuesday, Howdy is available across the United States.

“With the launch of Howdy, Roku is making beloved content from our catalog accessible to an even bigger audience,” said Johnny Holden, chief revenue and strategy officer at Radial Entertainment, the parent company of FilmRise.

This new offering will run alongside the existing Roku Channel, which will continue to remain free for users. Initially, Howdy will only be available on the Roku platform, with plans for subsequent rollout on mobile and other platforms.

“Priced at less than a cup of coffee, Howdy is ad-free and designed to complement, not compete with, premium services,” Roku founder and CEO Anthony Wood stated. This launch comes as Roku faces increased pressure from investors to become more profitable.

The company reported a 18% year-over-year increase in platform revenue, totaling $975 million, during its latest earnings report. Despite a net loss of $33.95 million in the second quarter, the growing popularity of Roku’s content offerings seems promising.

Analysts have noted that Howdy’s price point is the lowest among major streaming services in the U.S. “Howdy is by far the lowest priced ad-free service offered by a major company in the U.S.,” said Brahm Eiley, president of the Convergence Research Group.

As dedicated streaming platforms face challenges from rising pricing and production costs, Roku’s affordable alternative may attract consumers seeking value and uninterrupted viewing.

Jim Packer, president of worldwide television distribution at Lionsgate, expressed optimism, saying, “With engagement of over 125 million people a day, Roku is the perfect partner to launch a more accessible complement to the higher-priced SVODs.”

The 10,000 hours of content at launch includes fan-favorites like “Elvis,” “Mad Max: Fury Road,” and “The Blind Side,” along with series like “Weeds.” Roku is moving to expand its content library further with strategic partnerships.