Roku's FAST growth reshapes streaming with free and premium tiers
Roku has expanded its streaming services with a mix of free and subscription options. The company launched Howdy, a $2.99 ad-free tier, in August 2022, while its free FAST channels continue to grow rapidly. Lisa Holme, hired as head of content in September 2022, now oversees a strategy that blends original programming with live events and classic shows.
The Roku Channel has become a major player in free ad-supported streaming (FAST). It now leads Nielsen's Gauge for TV viewing in this category. By December 2022, the service accounted for 3% of all U.S. TV viewing—a 45% jump from the previous year. The platform's 500+ free channels cover everything from sports (Willow Sports, Fuel TV) to news (BBC News) and entertainment (Pokémon, classic sitcoms like Blossom and The Bernie Mac Show).
Roku's growth in FAST has outpaced the wider streaming market by 262 times since 2020. However, Lisa Holme expects this expansion to slow slightly in the coming years. The company sees the Roku Channel as a way to build brand loyalty, encouraging viewers to upgrade to premium services like Howdy.
Howdy, launched in 2022, offers ad-free content from the Roku Channel for a small monthly fee. Most subscribers are existing Roku Channel users adding the service to their routine. While Roku won't produce originals exclusively for Howdy, it will include Roku Originals in the lineup.
The company is also shifting its original programming focus. Instead of standalone shows, it plans to create content tied to sports events, holidays, and reunions of popular series. This approach aims to draw viewers during key moments while keeping production costs in check.
Roku's strategy combines free channels, low-cost subscriptions, and event-driven originals. The Roku Channel remains a leader in FAST viewing, while Howdy offers an affordable ad-free option. With a focus on live events and nostalgia, the platform aims to keep viewers engaged and boost premium sign-ups.