Warner Music Group (WMG) and Frank Sinatra’s estate have created a joint venture to manage the singer’s assets: Frank Sinatra Enterprises will “manage all aspects of Sinatra’s artistic contribution to music, film and stage. FSE will also administer all licenses for the use of Sinatra’s name and likeness.”
The press release doesn’t offer financial details, though we may hear more about the deal during WMG’s quarterly earnings call tomorrow. But on the face of it, this is sort of deal makes a lot of sense for Warner, or any music company trying desperately to diversify beyond the CD business. It gets to exploit an existing brand, and it gets to sell more than just music: Rights to use the picture of the Chairman in an ad campaign, for instance, could be at least as valuable as the ability to sell his songs.
One tripwire: Neither WMG nor Sinatra’s estate actually own all of his music: Much of his catalogue is owned by rival labels EMI and Sony-BMG. Release
Related: EMI Mines Its Music Vaults
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.