Roku Introduces Howdy: A $3 Ad-Free Streaming Service without Netflix Comparison

Roku recently launched Howdy, a new streaming service priced at $2.99 a month. This subscription-based video-on-demand service promises high-quality, ad-free entertainment for less than the cost of a cup of coffee, according to Roku founder and CEO Anthony Wood. Wood emphasized that Howdy is ad-free and is not meant to compete with premium services, but rather complement them.

Although Howdy is not in direct competition with premium services like Netflix or HBO Max, it also doesn’t quite align with free streaming services like Tubi or Pluto TV. The content lineup on Howdy includes older licensed titles from partners such as Lionsgate, Warner Bros. Discovery, and FilmRise, along with some Roku Originals featuring reality and unscripted shows. This content mix is similar to what’s available on The Roku Channel, Roku’s existing free streaming service, making Howdy essentially The Roku Channel without ads.

The question arises: Who would pay $2.99 a month to remove ads from The Roku Channel when a free version already exists? It seems like a tough sell. However, when looking at Amazon Prime Video’s model, where users can opt to pay to remove ads, Roku might be banking on a similar approach. Prime Video offers a vast selection of fresh movies, original series like “Reacher” and “The Summer I Turned Pretty,” and premium content that justifies paying to remove ads.

Despite Roku’s best intentions to carve out a unique niche for Howdy, concerns about its business model linger. Vikrant Mathur, Co-Founder of advertising streaming platform Future Today, raises questions about Howdy’s positioning in the competitive streaming landscape, especially considering Roku’s pivotal role as a central hub for various streaming services. Roku’s decision to introduce Howdy at a time when viewers have an abundance of choices in the streaming market raises some uncertainties about the service’s potential success.