Streaming pioneer Roku, Inc. (NASDAQ:ROKU) introduced Howdy on Tuesday, a new subscription video-on-demand service priced at just $2.99 per month.
The addition underscores Roku’s strategy to diversify revenue by expanding both third-party and first-party subscription offerings.
The ad-free platform goes live nationwide in the U.S. on Tuesday, aiming to fill a gap for viewers seeking uninterrupted, high-quality entertainment.
While reporting its second-quarter results on July 31, the firm said, “We see a significant opportunity to serve digital-first, performance advertisers, and capture incremental ad dollars beyond traditional TV in digital budgets.”
Howdy will be accessible on Roku devices beginning August 5, with a rollout to mobile and additional platforms planned soon.
According to Benzinga Pro, ROKU stock has gained over 63% in the past year. Investors can gain exposure to the stock via ARK Innovation ETF (BATS:ARKK).
The service debuts with thousands of movies and series, nearly 10,000 hours of content, curated from inaugural partners Lionsgate, Warner Bros. Discovery and FilmRise.
At a subscription cost comparable to a daily cup of coffee, Howdy positions itself as a complement to premium services.
CEO Anthony Wood stated that the service is built for viewers who want flexibility, no contracts, no trials, just a low flat rate and zero ads.
Lionsgate’s Jim Packer applauded Roku’s scale, reaching over 125 million U.S. viewers daily, as ideal for monetizing a broader audience. FilmRise parent Radial Entertainment’s Johnny Holden added that Howdy opens new avenues to maximize content value and audience reach.
To celebrate the launch, Roku will light up Times Square billboards with a friendly “howdy” message through August 31, showcasing premiere titles and inviting passersby to subscribe.
Howdy joins The Roku Channel, the most-watched free ad-supported streaming service in the U.S., and Frndly TV, the second-ranked live TV subscription among cord cutters.
Last month, Roku raised its full-year outlook for Platform revenue to $4.075 billion. Devices revenue is expected to decline year-over-year, impacted by tariffs. The company expects full-year revenue of $4.65 billion, up from a prior guide of $4.55 billion.
Price Action: ROKU shares are trading lower by 1.48% to $84.56 at last check Tuesday.
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