Why Roku Launched a New Ad-Free Streaming Service

Howdy from Roku. 

Last week, Roku launched Howdy, an ad-free subscription video-on-demand (SVOD) service for $2.99 per month, and the company thinks it’s exactly what audiences are looking for.

The new platform gives subscribers unlimited access to thousands of titles and nearly 10,000 hours of entertainment from its inaugural partners, which include Lionsgate, Warner Bros. Discovery, and FilmRise, along with select Roku Original titles.

Some of the movie and series titles subscribers can expect to find on the service include Mad Max: Fury Road, The Blind Side, Weeds, and Kids in the Hall, as well as a full slate of romcoms, medical dramas, ‘90s comedy classics, and more. Subscribers have the ability to cancel any time.

But why is Roku going the ad-free route while so many other streamers are shifting to more ad-supported structures? Additionally, why did the company come in at a low price point when most SVODs have risen in price?

According to Roku, the company saw a gap in the streaming marketplace amid the rising cost of ad-free entertainment. Howdy is a solution the company believes will appeal to both premium subscription and free TV audiences as a low-cost complement to those other services. 

“We have a strong finger on the pulse of the streaming ecosystem and saw that there really wasn’t another service at that price point that delivered an uninterrupted streaming experience,” a Roku spokesperson told ADWEEK. “Howdy fills this gap specifically for viewers who want an uninterrupted experience with high-quality content and a low price.”

The spokesperson said the $2.99 per month cost sets it apart from other competitors, citing that no other premium streaming services have these offerings at a price point for this value and quality of programming.

Of course, Amazon Prime Video also charges $2.99 for its ad-free option. However, that’s on top of the regular subscription cost of $14.99 per month or $139 annually.

Roku announced at the beginning of 2025 that it surpassed 90 million streaming households in the first week of January. And according to the spokesperson, Howdy is a “natural step” as the company grows its platform revenue. However, they also emphasized that, while the ad-free service is meeting a “specific need,” there is still a very strong audience for ad-supported TV streaming.

“The Roku Channel is poised to sustain its strong growth, leading the shift toward a future where viewers can choose when and how they experience entertainment—whether that’s free and ad-supported, premium ad-supported, or ad-free,” the spokesperson said. “Our platform hosts dozens of streaming services that cater to different audiences and offer a wide variety of advertising opportunities.”

Additionally, the spokesperson noted the new platform gives IP partners another way to monetize content and reach more viewers.

“Howdy expands viewer choice without undermining free and ad-supported tiers,” the spokesperson said. “We believe Howdy will appeal to a very specific segment of the market—premium subscribers who are looking for a low-cost, ad-free complement to more expensive offerings with prestige content. We also see Howdy appealing to FAST audiences who are interested in an affordable ad-free experience alongside their free, ad-supported offerings.”

To promote the platform, visitors who pass through Times Square will be greeted with a “howdy” through a branded takeover of digital billboards from Aug. 5 to Aug. 31.

As for the name of the ad-free service, Roku said it pays homage to the greeting that Roku founder and CEO Anthony Wood often uses.

“Priced at less than a cup of coffee, Howdy is ad-free and designed to complement, not compete with, premium services,” Wood said in a statement. “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 us at Roku, extending our mission to make better TV for everyone, by making it affordable, accessible, and built for how people watch today.”