NFL extends ‘Sunday Ticket’ exclusive with DirecTV for about $1 billion per year
from Broadcasting & Cable:
The National Football League has reached a four-year contract agreement with DirecTV for the leading satellite provider to remain the TV home for the Sunday Ticket package through 2014.
Announced during the NFL owners meeting in Dana Point, Calif., the pay-per-view pact, according to sources familiar with the negotiations, is valued at about $1 billion annually from 2011-2014. DirecTV currently pays some $700 million on its Sunday Ticket contract that expires after the 2010 season.
However, the agreement opens the door to a wider reach for the out-of-home package, which will become available to broadband subscribers that can’t receive DirecTV. This service is aimed at those who reside in multi-unit dwellings or satellite customers with poor sightlines to a satellite signal.
This broader broadband service, according to league officials, would kick off no later than 2012. Currently, broadband coverage of the games is limited to those who purchase Sunday Ticket, and then pay an additional $99 for the broadband coverage of the contests.
– read the rest on Broadcastingcable.com
At $299 a season DirecTV would need to sell over 3.3 million annual subscriptions (although sports bars pay a hefty premium for the package), but it is one big differentiator for DirecTV over cable.