Roku launches ad-free streaming service, Howdy, for $2.99 a month

Roku announced Tuesday it’s launched Howdy, a commercial-free streaming service that costs $2.99 a month, in a shift for the company that’s long been know for free, ad-supported viewing.

The streaming platform is expected to feature 10,000 hours of movie and TV content from Lionsgate, Warner Bros. Discovery and FilmRise, as well as its own, exclusive programming known as Roku Originals. The service is available across the U.S. beginning Tuesday.

“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, in a press release.

Roku, which also makes streaming hardware like devices and TVs, launched its free, ad-supported streaming option, the Roku Channel, in 2017. These types of services, which also includes Paramount Global’s Pluto and Fox Corp.’s Tubi, have seen accelerated growth when it comes to both viewership and advertising revenue.

The new service runs alongside the Roku Channel, which will remain free. Howdy will initially be available on the Roku platform, and will later be rolled out on mobile and other platforms, the company said.

“Priced at less than a cup of coffee, Howdy is ad-free and designed to complement, not compete with, premium services,” said Roku founder and CEO Anthony Wood in the release.

In June, the streaming and media giant signed a partnership deal with Amazon Ads, the advertising business of the tech behemoth, meant to expand Roku’s reach with advertisers. The agreement gives advertisers access to over 80 million U.S. households, and includes Roku and Amazon’s Fire TV streaming devices, according to a press release announcing the partnership.

Roku reported second-quarter earnings on Thursday, posting revenue of $1.11 billion, which exceeded analyst expectations. Platform revenue increased by 18% year over year to $975 million.