Discovery+ ad-supported tier joins The Roku Channel

Both the ad-supported and ad-free versions of discovery+ are now available on The Roku Channel, joining the aggregator’s roster of premium subscription video channels.

The ad-free version discovery+, which costs $6.99, has been available on the Roku platform since the service launched. The latest announcement now brings the $4.99 per month ad-supported tier to The Roku Channel.

Discovery+ boasts over 70,000 titles from networks including HGTV, Food Network, TLC, ID, OWN, Travel Channel, Discovery Channel, Animal Planet and Magnolia Network. It also has content from A&E, the History Channel and Lifetime, along with 15 24-7 linear channels and more than 200 discovery+ original titles.

Randy Ahn, head of The Roku Channel SVOD, told Fierce that Roku is excited to add the scale and caliber of discovery+ to the more than 50 SVOD premium subscriptions the platform has today, sitting alongside AMC+, Starz, Showtime, Epix and others.

“We really think that demonstrates our ability to bring on SVODs with very large libraries of content, being able to support multiple tiered plans in both the ad-supported and ad-free, and also being able to bring our users a variety of content formats across linear and VOD,” Ahn said.

The biggest benefit for Roku is from a user perspective, according to Ahn, as the platform makes more premium content available across linear, SVOD and FAST channels, to users in a unified and aggregated way, across different business models of free, ad-supported and ad-free.

“It’s just an amazing, wide variety of content, and high-quality content, in this single aggregated experience,” he noted.

Discovery+ is a first for Roku in terms of offering an ad-supported SVOD tier within premium subscriptions. Supporting that along with the ad-free version speaks to how users are moving across all of the various business models, Ahn noted, and provides yet another option for Roku users.

“They can consume free ad-supported content, they can go ahead with an ad-free experience and pay for a subscription there, and have yet another option that sits in between,” he said.

As for whether multiple tiers of service will become more prevalent for Roku if ad-supported models continue to gain momentum, Ahn said that the company sees what’s happening in the market and will continue to follow closely.

“If that continues to be an important part of partner strategies, then we want to be able to do what we can to support them and bring them into the Roku Channel,” he commented.

And anything that brings more streaming viewers to the Roku platform is a positive, according to Roku CEO Anthony Wood. During first quarter earnings, he said that in general, the company believes more AVOD offerings will speed up the movement of traditional TV advertising budgets to streaming.

However, with more content available on an increasing number of services and ways to access, many consumers are getting overwhelmed by streaming options and are now craving bundles, according to data from Nielsen. The Roku Channel is one aggregator platform that offers access along with a single monthly bill across premium subscriptions to help manage different SVODs.

Ahn also called out a unified ‘Continue Watching’ row. So for example, if a viewer comes to the Roku Channel and is watching an AVOD title like “Two Broke Girls”, is subscribed to discovery+ to watch “90 Day Fiancé”, and then watches “ABC News Live” on a FAST linear channel, they can see all of those options in a single row on the Roku Channel homepage, making it easier to jump across content based on interest and viewing for simpler access and discovery. All premium subscriptions on The Roku Channel have a standard minimum 7-day free trial, with a one click signup process.

As for what Roku brings to discovery+, The Roku Channel is a top 5 channel on the platform reaching an estimated 80 million people in the U.S. in Q4, delivering additional reach and ability to engage with that audience.

“This is an additional touchpoint that is accessing all of our Roku Channel users, so they’re [discovery+] really benefiting from that extended reach,” Ahn said.

Gabriel Sauerhoff, SVP Digital Distribution and Commercial Partnerships at Warner. Bros. Discovery, also pointed to broader reach in a statement, saying the company is pleased to deepen the relationship with Roku.

“We look forward to further extending the reach of our exceptional library of lifestyle and real-life content to millions of Roku streamers and providing them increased optionality in how they access discovery+,” Sauerhoff stated.                

In the first quarter Warner Bros. Discovery reported adding 2 million net paid subscribers, while WarnerMedia (while still under AT&T before the merger was finalized) had 3 million net additions for HBO Max. Warner Bros. Discovery plans to create a combined streaming service using both Discovery and WarnerMedia assets, but no word if that might come to The Roku Channel once that eventually launches.

The expanded relationship, announced Tuesday, also speaks to the so-called “TRC flywheel” – the idea of being able to access these users, generate revenue, reinvest revenue into better content and experiences for users, and coming back full circle.

“Just the caliber of content and partners that we’re bringing in is continuing to expand,” Ahn continued.

When it comes to bolstering content, last month Roku inked a deal with Lionsgate for exclusive streaming of theatrically released films, available on The Roku Channel after they initially debut on Starz. Media reports recently pegged Roku as forming a joint bid with Apollo Global Management to acquire a stake in Lionsgate’s Starz (also a premium SVOD offered on The Roku Channel).

Asked about potentially bringing Starz content under the Roku umbrella, Ahn said he couldn’t speak to any rumors or speculation.

“Starz is a partner of ours on premium subscriptions, they’re a great partner, we’re excited to have them there as part of the premium subscriptions,” he said.

Updated to reflect Epix is a Roku Channel premium subscription partner, not FX.