Roku’s $360M Volume Ranks 326th in U.S. Markets as Stock Dips 2.14% on Launch of $2.99 Ad-Free Streaming Service

On August 7, 2025, Roku (ROKU) closed with a 2.14% decline, trading volume of $360 million ranked it 326th among U.S. stocks. The company launched Howdy, an ad-free subscription streaming service priced at $2.99/month, offering 10,000 hours of content from Lionsgate, Warner Bros. Discovery, and FilmRise. CEO Anthony Wood emphasized the service's affordability as a complement to premium platforms like Netflix, targeting consumers seeking ad-free access without premium pricing.

Howdy's catalog includes titles such as *Mad Max: Fury Road* and *Weeds*, with initial availability via Roku devices, web browsers, and the Roku app. The service aligns with Roku's strategy to expand subscription offerings, following its $183 million acquisition of Frndly TV earlier this year. Lionsgate executives highlighted the partnership's potential to monetize content through a scalable, low-cost model. However, critics noted the service's "dated" content library, positioning it as a niche option rather than a direct competitor to premium platforms.

Roku's Q2 2025 earnings report incorporated Howdy into its growth projections, citing 15% top-line growth and an unexpected quarterly profit. The company's 90 million U.S. household reach and 125 million daily engaged users provide a foundation for scaling the new service. Marketing efforts include Times Square billboards showcasing Howdy's launch, underscoring Roku's focus on accessibility and low-price monetization in a competitive streaming landscape.

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