Howdy by Roku offers ad-free streaming for just $2.99/month with a solid library but lacks the latest blockbusters and premium features like HDR and Dolby Atmos.

Roku is coming out with its own Netflix-style subscription video service that provides thousands of TV and movie titles without any ads. But the company sees the new Howdy service as a cheaper complement to the likes of Netflix - not a direct competitor.

Streaming pioneer Roku, Inc. (NASDAQ:ROKU) introduced Howdy on Tuesday, a new subscription video-on-demand service priced at just $2.99 per month. The addition underscores Roku’s strategy to diversify revenue by expanding both third-party and first-party subscription offerings.