Sub Pop is a record label founded in 1986 by Bruce Pavitt. Sub Pop achieved fame in the late 1980s for signing Seattle bands such as Nirvana, Soundgarden, and Mudhoney, central players in the grunge movement. They are often credited with helping popularize grunge music. The label's roster includes Fleet Foxes, Foals, Beach House, The Postal Service, Flight of the Conchords, Sleater-Kinney, Blitzen Trapper, Father John Misty, Shabazz Palaces, METZ, Rolling Blackouts Coastal Fever, and The Shins. In 1995 the owners of Sub Pop sold a 49% stake of the label to the Warner Music Group.
In early 1988 Pavitt and Poneman quit their jobs to devote their full attention to Sub Pop. Raising $43,000, they incorporated that April. "Of course that was spent in, like, thirty days", Pavitt recalled. "We almost went bankrupt after a month". That August Sub Pop released the first single by Mudhoney, a band featuring former members of Green River. Sub Pop released the Mudhoney single "Touch Me I'm Sick" in an intentionally limited first pressing of 800 copies to create demand. The strategy was later adopted by other independent labels.
Pavitt and Poneman studied earlier independent labels ranging from Motown to SST Records and decided that virtually every successful movement in rock music had a regional basis. The pair sought to create a cohesive brand identity for Sub Pop. The label's ads promoted the label itself more than any particular band. The label also sought to market a "Seattle sound", which was accomplished with the help of producer Jack Endino, who produced 75 singles, albums, and EPs for Sub Pop between 1987 and 1989. Endino recorded cheaply and quickly; in order to operate this way, he utilized some consistent studio techniques, which gave the records a similar sound.
In November 1988 Sub Pop released "Love Buzz", the debut single by Aberdeen, Washington band Nirvana, as the first entry in the Sub Pop Singles Club, a subscription service that would allow subscribers to receive singles by the label on a monthly basis by mail. At its peak in 1990, the club had two thousand subscribers. The club made Sub Pop a powerful force in the Seattle scene, and effectively made the label's name synonymous with the music of the Seattle area—much in the same way Motown Records was to Detroit—and helped to secure the label's cash flow. The original series was discontinued in 1993, followed by Singles Club V.2, launched in 1998 and discontinued in 2002.
Mindful that garnering the attention of the American mainstream music press was difficult for all but the largest indie label, Pavitt and Ponemen took inspiration from alternative bands like Sonic Youth, Butthole Surfers, and Dinosaur Jr. and sought to publicize the label via the British music press. In March 1989, Pavitt and Poneman flew Melody Maker journalist Everett True to Seattle to write an article on the local music scene. As Pavitt had anticipated, the British press became enamoured with Sub Pop and the grunge sound. Pavitt said, "I really felt that the Brits and the Europeans wanted to see something that was unruly and that was more of an American archetype -- something that was really primal and really drew from the roots of rock & roll, which was very American." Poneman explained the label's success: "It could have happened anywhere, but there was a lucky set of coincidences. Charles Peterson was here to document the scene, Jack Endino was here to record the scene. Bruce and I were here to exploit the scene."
When Nirvana moved to Geffen Records, Sub Pop received royalties from sales of Bleach that kept the label going for years afterwards. A stipulation was also implemented where selected future Nirvana studio LPs were required to carry the Sub Pop logo alongside Geffen's. After the mainstream success of Nirvana, many successful grunge bands had left Sub Pop for major record labels. Soon afterwards, a joint venture was formed with Warner Bros. Records (which had distributed Geffen since that label was founded in 1980; after 10 years under Warner, Geffen was sold to MCA Music Entertainment Group), thereby ending Sub Pop's status as an entirely independent label.