“This is a lot of catalog content,” says Parks Associates entertainment research director Michael Goodman, using industry shorthand for titles making up Hollywood’s back catalogs.
“There is not one business model that fits everybody,” says Goodman. Adding ad-free streaming to its portfolio is a smart move for Roku, he argues. “You need to have multiple platforms to reach the consumer.”
If Howdy catches on, other free streamers may follow with their own paid plans, predicts Goodman. “There is potential for this to expand to other services.”
“Subscription growth at any cost — that’s not the model today,” says Goodman, alluding to the billions of dollars the industry poured into streaming a few years ago.
When services like Apple TV Plus and Peacock launched in 2019 and 2020, respectively, they bet on undercutting Netflix with deeply discounted subscription plans — only to double the costs of those plans in the following years.
Could the same eventually happen to Howdy subscribers? Goodman thinks so. “Over time, the price will rise,” he says.
From the article, "Paid streaming for cheapskates is having a moment" by Janko Roettgers
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