DirecTV (NASDAQ:DTV) extended its exclusive contract to sell the Sunday Ticket package of National Football League games, and sources said the company will pay $1.5 billion a year to keep the popular offering that has helped attract subscribers.
The satellite TV provider and the league announced a multi-year deal on Wednesday. Sources familiar with the agreement said DirecTV's annual payments would average $1.5 billion for eight years.
DirecTV sells the package of out-of-market Sunday afternoon games to subscribers for about $300 a year, providing a key marketing advantage over cable TV competitors.
The new deal expands DirecTV's rights to stream the games live on mobile devices and broadband.
Shares of DirecTV rose 91 cents, or 1 percent, in after-hours trading to $87.50.
(Reporting by Lisa Richwine; Editing by David Gregorio)