In 1989, Island Records was sold to Polygram, who immediately started to re-release parts of the huge Island catalogue, mainly classics from the 1970s and good selling records from the 1980s within a midprice CD series called Island Masters. The first year of the sub-label saw more than 80 releases, with new releases appearing for several years.

In 2000, the label was remodelled and renamed as Island Remasters.