In 2009, satellite television provider DirecTV (DTV) signed a $1 billion-a-year contract through the end of the 2014 season for exclusive rights to broadcast NFL games not available to fans through local affiliates.
DTV now provides that access to the package contents through mobile devices, as a perk on JetBlue Airlines (JBLU) as of 2010, and it’s now available in South America and Canada.
Hell, I watched a game last year on my tablet in a London hotel.
It is, at least until next year, a DTV money-maker: NFL Sunday Ticket generates around $450 million per year in subscriber fees through its 2 million subscribers, plus additional monies through the mobile applications offering. More importantly, the package is an entry for potential subscribers of the service’s regular programming lineup.
DTV’s stock price has doubled since inking the deal; meanwhile, revenues have grown more than 37% since fiscal 2009, and net income has soared more than 200% to nearly $3 billion.
However, DirecTV might be hurting in the long-term, as it will have to pony up big bucks to renew its NFL deal beyond 2014 — and others are in the mix to bid, including surprise entry Google (GOOG).
Still, DTV has at least a little juice left, and it’s fairly valued at 12 times earnings.