After years of predictability in the streaming market as Netflix (NASDAQ: NFLX) primarily dominated, the industry has now become a cut-throat market where only the companies with the most attractive content succeed. Warner Bros. Discovery's (WBD 1.08%) streaming efforts preceded the company's founding, with WarnerMedia launching HBO Max in May 2020 under AT&T (NYSE: T) and Discovery+ landing on the scene in January 2021. 

Warner Media merged with Discovery in April 2022 to form Warner Bros. Discovery. The company's stock has tanked almost 48% since then as merging and restructuring costs have led to significant hits in revenue. However, the company has promising assets that could make its stock a buy for investors willing to hold for the long haul.

A long-term investment 

Warner Bros. Discovery CEO David Zaslav has spooked investors in 2022, dishing out a seemingly endless slew of budget and content cuts. Slashes have included shutting down several international productions, canceling an all-but-completed DC film after a $90 million investment, multiple lay-offs, and abandoning the streaming service CNN+ after a month of service. As a result, Warner Bros. Discovery's stock is down significantly, dropping 11.7% in August alone. 

To make matters worse, the entertainment company's second-quarter revenue of $9.8 billion showed a 1% year-over-year decline alongside a net loss of $3.4 billion. However, it's not all bad news for Warner Bros. Discovery. Most of its losses have come from restructuring costs that won't last forever, and the company has paid down $6 billion of debt since April, despite losses in revenue. 

Although Wells Fargo (NYSE: WFC) revised its recommendation from "buy" to "hold" on Warner Bros. Discovery's stock after a disappointing second quarter, the bank's target price of $19 is still 46% higher than its price on Sept. 9. This implies investors could have a chance to buy the stock at a bargain now and reap the rewards in time.

Additionally, as streaming stocks go, there's no doubt that Warner Bros. Discovery's shares offer the best value when looking at price versus subscribers, especially compared to the considerably more expensive Netflix and Walt Disney (NYSE: DIS). It will take time for the company to complete its restructuring and figure itself out in the market, but Warner Bros. Discovery will likely find its footing in time. 

Outshining Amazon

Warner Bros. Discovery's biggest strength is its assets in HBO Max, Discovery+, and its valuable content library. According to data from Antenna, HBO Max has retained a 7% share of all U.S. premium streaming subscriptions for four straight quarters -- from third-quarter 2021 to second-quarter 2022 -- while Netflix has gone from 30% to 26% in the same period. During the four quarters, Discovery+ also grew its share from 3% to 4%.

The company's content has also been showing its strength in recent weeks, with the release of Game of Thrones spin-off House of the Dragon becoming the most watched premiere in HBO's history, hitting 9.986 million viewers between linear and streaming platforms in the U.S. Even more impressively, the show is seemingly stealing ratings and viewers from Amazon's (AMZN -2.56%) Lord of the Rings spin-off The Rings of Power. The two fantasy shows, both based on incredibly popular intellectual property, are facing off every week as each releases a new episode. 

As it stands, audiences have given The Rings of Power a score of 39% on Rotten Tomatoes, while Warner Bros. Discovery's House of the Dragon boasts a score of 85%. Moreover, according to Whip Media, House of the Dragon garnered 51% more viewers than The Rings of Power in their three-day post-debut window. Also playing to Warner Bros. Discovery's favor is the fact that House of the Dragon cost $200 million to produce, while The Rings of Power cost Amazon $465 million, showing WBD is getting significantly more bang for its buck. 

Should you buy WBD stock?

Warner Bros. Discovery CFO Gunnar Wiedenfels defended the company's recent content slashes at a Bank of America conference on Sept. 8. Wiedenfels explained that "[T]he course corrections" and "making changes quickly" were the result of not agreeing "with the track that WarnerMedia was on." The executive went on to say that his team has helped the company's content creators by "providing financial data points where possible, and a framework to assess the potential from a financial perspective."

Wiedenfels' comments are positive as the company moves to its next phase, successfully merging HBO Max and Discovery+ into one profitable streaming service. Six months in, Warner Bros. Discovery has made significant and sometimes jarring alterations to its business, but its lucrative assets suggest it won't be down forever. It might take several years, but if you're willing to wait, the stock could be a winner in the long run.