New revenues, existing content

Valerie | 31 Aug 2009, 20:44

Content businesses are under increasing pressure to generate new business models and drive revenue streams. However, some companies are finding benefit in maximising the value of existing content.

Universal Music Group announced last week that it has acquired the rights to Frank Sinatra’s Reprise catalogue outside North America after it struck a long-term deal with Frank Sinatra Enterprises, a joint venture between the Sinatra family and Warner Music Group. Under the agreement, Universal gains the rights to thirty-eight albums, alongside select new releases and distribution rights for 14 audio-visual programmes on DVD.

Similarly Viacom, the owner of MTV and VH1 is betting on the Beatles’ 1960’s hits to attract new players and revive sales of its ‘The Beatles: Rock Band’  game franchise after falling purchases of earlier versions led to a 41 percent drop in second-quarter revenue at the division that includes games.

Launching on 9th September and in a bid to challenge Activision’s successful ‘Guitar Hero’, Viacom’s offering will come with 45 remastered songs, including tracks from the band’s Ed Sullivan Show appearances. The band’s label, EMI Group Ltd., will issue remastered CDs the same day and collect royalties from game sales.

A number of additional third parties stand to benefit from the deal. In addition to EMI, Viacom will pay royalties to Apple Corps and Michael Jackson’s estate, through its part ownership of Lennon-McCartney songs, also will receive a portion.

Nostalgia has been a successful tool for brands during the recession and betting on the selling power of two musical greats – remastered and brought alive for a new generation is surely win-win for everybody – distributors, as well as content creators.