By Kayla DeKraker
Roku has entered the paid streamer space with ad-free service Howdy.
Howdy hit the market on Aug. 5 for just $2.99 per month as Roku hopes to distribute shows of its own at a very affordable price.
The Hollywood Reporter said that the service “will offer close to 10,000 hours of content from Lionsgate, Warner Bros. Discovery and FilmRise, including MAD MAX: FURY ROAD, THE BLIND SIDE, WEEDS and KIDS IN THE HALL, alongside select Roku Original titles.”
“Howdy is a new streaming service from Roku that brings you unlimited access to iconic, feel-good TV shows and movies — all for just $2.99/month. No ads. No stress. Just comfort content, anytime,” Roku promises on its website.
Upon its launch, Roku CEO and founder Anthony Wood described Howdy as “priced at less than a cup of coffee,” adding that it was “designed to complement, not compete with, premium services.”
“We’re meeting a real need for consumers who want to unwind with their favorite movies and shows uninterrupted and on their terms,” he added. “Howdy is a natural step for us at Roku, extending our mission to make better TV for everyone, by making it affordable, accessible, and built for how people watch today.”
Those partnering with the new service look forward to its potential.
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Jim Packer, President of Worldwide Television Distribution at Lionsgate, said, “We’re excited to continue our longstanding collaboration with Roku on innovative ways to connect with audiences. 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.”
He noted, “This service has the ability to scale quickly while providing us with a new way to monetize our content, and we’re proud to be part of this new streaming experience.”
The new service may be very appealing as other streamers hike prices. The decline of cable and rise of streaming has forced companies to replace lost revenue and crack down on password sharing, leaving customers pinching pennies to pay for streaming.
Many services have attempted to solve this problem by creating bundles. For example, Disney and Hulu have combined forces, and Peacock, Netflix and Apple TV+ combined through Comcast’s Xfinity Streamsaver.
Some users, though, have canceled services due to the hikes. Last year, Catalina Skramstad, senior VP of marketing and partnerships at streaming analytics firm NPAW, said, “Consumer tolerance for price increases varies widely. Typically, around 30% to 40% of subscribers may consider canceling their subscriptions in response to a price hike.”
Will Howdy’s low price keep users hooked? Only time will tell.
Read Next: Why Roku Launched Paid Ad-Free Platform, Howdy
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