Roku (ROKU) Launches Ad-Free Streaming Service Called ‘Howdy'
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According to the company, the Howdy streaming platform will cost $2.99 a month and will feature 10,000 hours of movie and television content from entertainment companies such as Lionsgate Studios (LION) and Warner Bros. Discovery (WBD).
Management said they also plan to produce and make available exclusive programming known as 'Roku Originals' on the Howdy platform. The service is available in the U.S. starting on Aug. 5. The new streaming service is a big shift for Roku, which until now has been known for free, ad-supported content that was supplied by other companies.
Streaming Evolves
'With the launch of Howdy, Roku is making beloved content from our catalog accessible to an even bigger audience,' said the company in a news release. Roku, which also makes streaming devices and television sets, launched its free, ad-supported streaming service called the 'Roku Channel' in 2017. Since then, the streaming landscape has evolved and changed considerably.
Competitors of Roku, which include Netflix (NFLX) and Walt Disney Co. (DIS), have moved in the opposite direction, adding advertisements to their platforms along with tiered pricing after being ad-free since their inception. The changes come as streaming services seek to capitalize on both growing membership fees and advertising revenue.
The new Howdy service will run alongside the existing Roku Channel, which remains free to access, according to the company. ROKU stock is up 13% this year.
Is ROKU Stock a Buy?
average ROKU price target of $104.37 implies 23.98% upside from current levels.
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