USA - Aug 06, 2025 - Roku, the #1 TV streaming platform in the U.S., Canada, and Mexico, announced, the launch of Howdy, a $2.99/month ad-free subscription video-on-demand (SVOD) service. Offering nearly 10,000 hours of content from partners like Lionsgate, Warner Bros. Discovery, and FilmRise, alongside select Roku Originals, Howdy targets budget-conscious viewers seeking uninterrupted entertainment.
Initially available on Roku devices and at howdy.tv, the service will expand to mobile and other platforms soon. Following its $185 million acquisition of Frndly TV in May 2025, Roku is diversifying its portfolio, which includes The Roku Channel, the most-watched free ad-supported streaming service (FAST) in the U.S. With 90 million streaming households and 125 million daily users, Howdy positions Roku to capture a share of the $60 billion streaming market while complementing premium services.
Howdy delivers a curated library of nearly 10,000 hours, focusing on familiar “library content” rather than costly originals. Key titles include:
- Movies: Mad Max: Fury Road, The Blind Side, Elvis, The Graduate, Reservoir Dogs, Dirty Dancing, American Psycho, The Hunger Games series, Back to the Future.
- TV Shows: Weeds, Kids in the Hall, Party Down, Nurse Jackie, Southland, Westworld.
- Genres: Rom-coms, medical dramas, ‘90s comedies, feel-good classics.
Priced at $2.99/month, Howdy offers an ad-free experience with no contracts or hidden fees, allowing cancellation anytime. Unlike premium streamers like Netflix ($24.99/month for ad-free 4K) or Peacock ($16.99/month ad-free), Howdy’s $2.99 rate is permanent, not promotional. It complements Roku’s ecosystem, including The Roku Channel and Frndly TV (50 live channels, $8.99-$12.99/month). Strategic content partnerships enable the low price point.
Strategic Context
Howdy’s launch aligns with Roku’s Q2 2025 earnings, reporting $1.11 billion in revenue (up 15%) and $975 million in platform revenue (up 18%). With 80 million active accounts and 35.4 billion streaming hours (up 17% year-over-year), Roku leverages its reach to drive adoption. The service follows the May 2025 acquisition of Frndly TV and a June 2025 Amazon Ads partnership, enhancing advertiser access. Howdy targets viewers fatigued by rising subscription costs, with 61% of U.S. viewers planning to reduce streaming spending, per a July 2025 Hub Entertainment Research survey.
Promotion and Accessibility
Roku is promoting Howdy with a Times Square digital billboard takeover from August 5 to August 31, 2025, highlighting key titles. Initially exclusive to Roku devices (streaming sticks, TVs, Streambar Pro), the service is accessible via the Howdy app or howdy.tv, with mobile and third-party platform support planned. Roku’s interface integrates Howdy seamlessly, enhancing discoverability for its 90 million streaming households.
Leadership and Industry Perspectives
CEO Anthony Wood stated, “We’re meeting a real need for consumers who want to unwind with their favorite movies and shows uninterrupted and on their terms. Howdy is a natural step for Roku, extending our mission to make better TV for everyone.” Lionsgate’s Jim Packer said, “Roku is the perfect partner to launch a more accessible complement to higher-priced SVODs.” Radial Entertainment’s Johnny Holden noted, “Howdy makes our content accessible to a bigger audience.”
Industry Impact and Challenges
The $60 billion streaming market faces rising costs, with services like Netflix and YouTube TV hiking prices significantly. Howdy’s $2.99 ad-free model competes with FAST services like Tubi and Pluto TV while appealing to budget-conscious viewers. Challenges include:
- Content Modernity: The library-focused catalog lacks recent originals, potentially limiting appeal.
- Platform Exclusivity: Initial Roku-only availability may restrict adoption until broader platform support is added.
- Market Saturation: Convincing viewers to add another service, even at $2.99, is challenging with 61% planning to cut subscriptions.
Roku mitigates these with its low price, content partnerships, and massive reach, targeting “comfort watch” enthusiasts.
Future Outlook
Roku plans to expand Howdy to mobile and third-party platforms, with potential international rollouts. By 2027, Roku aims to reach 100 million active accounts and diversify revenue through subscriptions, complementing its $739 million Q2 2025 ad revenue. Howdy’s success will hinge on content refresh rates and user feedback, but its value-driven model could drive device sales and ecosystem loyalty.
