US sports body the National Football League has signed a USD4bn four-year extension deal with DirecTV Group.
The contract comprises payments of USD1bn a year for the 2011-14 seasons, a 43% increase on the current five-year deal, which sees DirecTV paying USD700m per year for the exclusive right to sell the NFL’s Sunday Ticket package. The package allows fans to see every NFL Sunday game rather than just those games shown on local broadcast channels.
The extension deal is significant as it erodes DirecTV's exclusive control of out-of-market games. For the first time, the NFL will be able to make deals with cable operators and internet providers to offer the Red Zone Channel, which provides cut-ins to the key moments of NFL games. In addition, cable subscribers in areas lacking satellite service will be able to buy the full Sunday Ticket package online.
However, the NFL has yet to reach the required agreements with providers to give them access to the Red Zone Channel. Negotiations with companies that carry the NFL Network, the league’s own cable channel, have been ongoing for several years.
StrategyEye's related categories: TV Channels - General TV, Broadcasters - Satellite TV, Video Portals - Sports, TV Channels - On Demand TV
StrategyEye's related companies: The National Football League, DirecTV
