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SAN JOSE - Roku (ROKU), the streaming platform with a market capitalization of $12.35 billion, announced Tuesday the launch of Howdy, a new ad-free subscription video-on-demand service priced at $2.99 per month, significantly lower than most premium streaming platforms. According to InvestingPro data, Roku’s revenue grew 17.32% over the last twelve months, demonstrating strong momentum in its streaming business.
The service, which launches nationwide in the U.S. today, will offer subscribers access to thousands of titles and nearly 10,000 hours of entertainment from launch partners including Lionsgate, Warner Bros. Discovery, and FilmRise, alongside select Roku Original content. The company’s strong financial position, with more cash than debt on its balance sheet and liquid assets exceeding short-term obligations as reported by InvestingPro, positions it well for this expansion.
According to the company’s statement, Howdy’s content library will feature titles such as "Mad Max: Fury Road," "The Blind Side," "Weeds," and "Kids in the Hall," along with various rom-coms, medical dramas, and classic comedies.
"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 press release.
Jim Packer, President of Worldwide Television Distribution at Lionsgate, noted that the service "has the ability to scale quickly while providing us with a new way to monetize our content."
Initially, Howdy will be available exclusively on the Roku platform, with plans to expand to mobile and additional platforms in the future. The company stated that subscribers can cancel at any time with no contracts or hidden fees.
The launch of Howdy adds to Roku’s existing streaming services, which include The Roku Channel, described by the company as the most-watched free ad-supported television service in the U.S., and Frndly TV.
To promote the new service, Roku is running a branded takeover of digital billboards in Times Square from August 5 to August 31.
The company noted that the launch of Howdy was included in the outlook provided in Roku’s shareholder letter and earnings call for Q2 2025. With the stock showing impressive returns of over 66% in the past year and analysts predicting profitability in 2025, investors seeking detailed analysis can access comprehensive financial metrics and 12 additional ProTips through InvestingPro’s exclusive research reports.
In other recent news, Roku Inc. reported its Q2 2025 earnings, delivering a notable performance that exceeded market expectations. The company announced an earnings per share (EPS) of $0.17, which was significantly higher than the anticipated -$0.15. Additionally, Roku’s revenue reached $1.21 billion, surpassing the expected $1.07 billion, which has generated positive sentiment in the market. Meanwhile, Citizens JMP reaffirmed its Market Outperform rating for Roku, maintaining a price target of $110.00. The firm highlighted Roku’s extensive market reach, noting its presence in more than 50% of U.S. broadband households. Roku continues to lead in the U.S. TV operating system market while expanding internationally. These developments reflect the company’s strong position and potential for further growth.
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