Another streaming service? Yes. Another overpriced one? Nope. With subscription fatigue on the rise and streaming prices climbing, Roku’s latest move aims to resonate with budget-minded consumers. The company has announced Howdy, a new $2.99 per month ad-free service, launching Aug. 5.
Subscription fatigue and rising streaming costs
According to a 2023 Harvard Business School article by Jay Fitzgerald, the average U.S. consumer spent $273 a month on 12 paid subscriptions in 2022.
“Nearly 75% of companies that sell directly to customers have some sort of subscription offering,” according to a new industry and background note co-authored by Harvard Business School professor Elie Ofek.
Fitzgerald highlighted the benefits that subscriptions can offer—such as spreading out payments over time, choosing flexible pricing tiers, and ensuring regular access to goods or services.
“However, subscriptions have become so widespread that many consumers are starting to feel overwhelmed with what some are calling ‘subscriptionitis,’” Fitzgerald wrote. “And customers have made it clear that subscriptions aren’t appropriate for all products and services.”
When it comes to streaming, prices have been steadily rising over the past five years, according to Fortune:
- Disney+ launched at $6.99 per month in 2020. Its ad-free version now costs $16, a 129% increase.
- Netflix eliminated its entry-level plan and added an ad-supported tier. In 2020, its entry-level plan was $8.99 per month. As of 2025, the lowest ad-free option is $17.99 per month, or $24.99 if you want to share your password—marking a 100% increase.
- Other major players like Apple TV+, YouTube TV, Paramount+, Peacock, and Hulu have also raised prices over the past five years.
Budget-friendly, ad-free viewing
That is where Howdy comes in and hopes to fill a gap in the market.
Designed to deliver “comfort content,” familiar movies and shows that people already love, without commercial interruptions. The service will launch with “thousands” of titles and nearly 10,000 hours of content, featuring films and TV series from studios like Warner Bros. Discovery, Lionsgate and others, per Deadline.
At launch, some of the titles available will include “Back to the Future,” ”The Blind Side” and “Elvis,” according to Roku.
Roku emphasized that Howdy’s $2.99 price tag is not a limited-time teaser, but a price point the company intends to keep stable for the foreseeable future.
“We’re meeting a real need for consumers who want to unwind with their favorite movies and shows uninterrupted and on their terms,” Roku CEO Anthony Wood told USA Today. “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.”
Not a Netflix competitor, but a companion service
While some may wonder whether Roku’s move is meant to challenge streaming giants like Netflix, Disney+ or HBO Max, the company is clear: Howdy isn’t designed to compete with premium “tier one” services, but to complement them.
“We don’t think it’ll replace a ‘tier one’ streaming service,” Wood said. “People have multiple streaming services and it will be a great complement.”
“Priced at less than a cup of coffee, Howdy is ad-free and designed to complement, not compete with, premium services,” Wood continued.
Exclusive to Roku — for now
At launch, Howdy will only be available on Roku devices, which reach about 125 million people daily and are present in more than half of U.S. households, according to Comscore. However, Roku says it plans to expand to mobile and other platforms soon.
In an era of rising streaming costs and subscription fatigue, Howdy stands out by offering a back-to-basics alternative: known content, no ads and a rock-bottom price.
Wood summarized the value proposition: “This type of service doesn’t exist — add a bunch of extra movies and TV shows for three bucks a month and no ads! I mean, I think it’s great.”
What is Roku?
Roku is a leading streaming technology company that makes devices like streaming sticks and powers many smart TVs. Its platform is used by millions of Americans to access services like Netflix, Hulu and YouTube. Roku also operates The Roku Channel, a free, ad-supported streaming service, per Comscore.
With Howdy, Roku isn’t trying to reinvent the streaming wheel, it’s trying to simplify it. In a market increasingly dominated by rising costs and exclusive content wars, Roku’s bet is that familiarity, affordability and simplicity still matter to their consumers.