Nine Entertainment (ASX:NEC) is bolstering its position across several areas through an NRL broadcast rights extension, its first artificial intelligence content deal, and strong outdoor advertising trends, Jefferies said in a note on Tuesday.

The company secured NRL and NRLW broadcasting rights from 2028 to 2034 at a cost of $135 million per year, higher than the current annual cost of $115 million.

Jefferies views this investment as important for retaining premium sports content and expects growing NRL audiences to help offset the higher broadcasting costs.

The company's recent agreement with Microsoft, which allows its news content to be referenced in Copilot, has created a new AI revenue stream. This comes as the industry shifts toward commerical agreements between AI companies and rights holders, supporting more negotiated licensing models that could benefit publishers such as Nine.

The brokerage maintained a buy rating and price target of AU$1.40.