Warner Bros. Discovery's (WBD -1.07%) share price has struggled for some time, particularly when compared to those of its streaming rivals. Warner Bros.'s stock is down about 38% over the last year, while Walt Disney (DIS -1.01%) has experienced a roughly 24% drop and Netflix (NFLX 1.74%) a more modest dip of around 4%. All three price drops, in their own way, reflect a changing attitude about the potential of the subscription video-on-demand (SVOD) sector. Many analysts watching this sector of the market believe the years of exponential subscriber growth are nearing an end.

With this in mind, investors looking at Warner Bros. Discovery may wonder where the company's stock will be in a few years' time. Let's explore.

A unified streaming platform is in the works

One of Warner Bros. Discovery's biggest moves with the potential for long-term impact is its decision to merge HBO Max with Discovery+. Dubbed Max, the new service will launch May 23, 2023, and feature everything from premium dramas such as The Last of Us, alongside reality shows like Naked and Afraid. (It should be noted that a version of Discovery+ will remain for those who don't want to switch to the new service.)

Warner Bros. Discovery also revealed it would add a $19.99-a-month tier. (HBO Max was previously capped at $15.99 a month). With the new premium pricing, Warner Bros. Discovery is now competing more directly with Walt Disney and Netflix, who also have $19.99 premium streaming tiers. For investors, this decision will surely be compelling, particularly as data from Walt Disney shows 40% of Disney+ customers subscribe to its $19.99-a-month Disney Bundle.

FAST as a differentiator

Warner Bros. Discovery is also looking differentiate itself from Walt Disney and Netflix with a move into free ad-supported television (FAST). 

Speaking during the company's fiscal 2022 fourth-quarter results, Zaslav outlined a plan for a FAST service that is set to launch later this year. As Zaslav described it, the subscription-free platform offers a "unique opportunity to increase [Warner Bros. Discovery's] addressable market," as the company can rely on a deep library of TV shows and movies. "Basically," the executive explained, "we create a flywheel of our own, where we own the full ecosystem, the subscription, the ad-lite and the ad-free. And we take advantage of all the content that we have."

For market watchers, Warner Bros. Discovery's optimism about FAST should be particularly interesting. According to data from video aggregation service Plex, FAST accounted for 6% of content consumed on its platform in 2020; in 2022, it accounted for 30%.

Warner Bros. Discovery over the long term

On the one hand, Warner Bros. Discovery is seemingly getting into premium SVOD years after its competitors, which could be viewed as a course correction rather than a radical transition. But by getting into FAST -- an area that neither Netflix nor Walt Disney currently operates in -- Warner Bros. Discovery is at least catching a rising trend.

If Warner Bros. Discovery is able to execute on all areas of its streaming strategy, then it's reasonable to think that, in the coming years, it could become an even bigger player -- particularly when it comes to ad-supported content.

Stakeholders should pay attention to Warner Bros. Discovery's 2023 Q1 results, which are expected to be released in the third week of April. If, as is quite possible, the company's merged HBO Max/Discovery+ service has debuted by then, it's natural that attention will turn to Warner Bros. Discovery's FAST plan. If there are indications of just when it will launch, investors will have a rounded-out picture of the company's streaming strategy.