The story of the streaming video-on-demand (SVOD) industry in recent years has been one of exponential growth -- particularly during the worst months of the COVID-19 pandemic. Netflix (NFLX 3.72%), Walt Disney (DIS 1.81%), and Warner Bros. Discovery (WBD 0.06%) all saw their subscriber numbers rise during the lockdown periods.

But as the world has opened up again, growth in the streaming business has become harder to come by -- partly driven by higher prices and consumer fatigue. In spite of the challenges, many believe there is still room for the global streaming market to expand. Fortune Business Insights projects the space will grow at a compound annual rate of 19.9% between 2022 and 2029.

With this in mind, here's why Netflix, Walt Disney, and Warner Bros. Discovery could be smart buys over the long term.

Netflix looks beyond SVOD

With more than 230 million subscribers, Netflix is the biggest stand-alone SVOD service in the world. However, the company is making efforts to expand its portfolio of offerings -- specifically, by investing in video games.

According to PwC, between 2019 and 2021, global video game revenue increased by 32%. The company also anticipates an 8.4% compound annual growth rate through 2026, when the industry is projected to be valued at $321 billion. And considering there are an estimated 3.1 billion gamers around the world, it's plain to see why Netflix is targeting the sector.

Netflix has acquired several video game studios and published a batch of iOS and Android mobile titles that are exclusively available to its subscribers. The company has also set its sights on cloud gaming, a technology that lets users play video games where the key processing power is provided via servers over the internet rather than hardware owned by the player.

Netflix has yet to launch a cloud gaming service, but has said it plans to eventually make its titles playable across all devices that support its video content.

Disney's streaming and parks are symbiotic

Since returning to reprise his role as Walt Disney CEO, Bob Iger has set the company on a path to rein in streaming costs, calling it his "number one priority."

Speaking during Disney's fiscal 2023 first-quarter earnings call, Iger told investors he was focusing on a range of initiatives that would make the company's streaming unit profitable by the end of 2024. "I have drilled down into every facet of the streaming business to determine how to achieve both profitability and growth," he said. "And so, with that goal in mind, we will focus even more on our core brands and franchises, which have consistently delivered higher returns."

For investors, Iger's commitment to the company's most popular characters also bodes well for its "parks, experiences and products" division, which made a profit of $7.9 billion in fiscal 2022. Indeed, the company acknowledges its franchises are key to bringing customers through the gates.

"We had the opening of Avengers Campus [at Disneyland Paris] in July, and that is incredibly popular in driving attendance," said Disney CFO Christine McCarthy during the Q1 2023 call. "And we also have a new hotel that was ... redone into the art of Marvel. Again, very popular and attracting a lot of consumers."

Warner Bros. Discovery is going FAST

Warner Bros. Discovery's share price has long lagged behind its SVOD rivals, but the company is planning a move into the free, ad-supported streaming television (FAST) space, which could present significant revenue opportunities.

In 2021, FAST platforms such as Roku (NASDAQ: ROKU) and Fox's (NASDAQ: FOX) Tubi collectively sold $2 billion worth of advertising. Some analysts believe that figure will pass $4 billion in 2023.

Speaking during Warner Bros. Discovery's fourth-quarter investor call, CEO David Zaslav said the company had identified "a big opportunity in FAST" and that it would take advantage of its status as the "largest owner and producer of content in the world" to launch its own service later this year.

"[W]e can create a Tubi or a Pluto without buying content from anybody by just being able to put it on ourselves," said Zaslav.

The shape of things to come

Despite each company's promise, investors may question just how fruitful the premium streaming industry will be. After all, Netflix is chasing video games, Disney is propping up its on-demand business with theme park rides, and Warner Bros. Discovery is reverting to a wholly ad-supported model in a quest for growth.

But viewed collectively, these decisions highlight the value each company is putting on product diversity, and the possibilities that represents. Market watchers should pay attention to how each company manages these strategies, because if they can pull them off, there could be notable stakeholder gains down the line.