1989–1995: Origins, early success, and joint ventures
In 1989, Ted Field began to build Interscope Records as a division of his film company,
Interscope Communications. To run it, he hired John McClain, who had played a central role in
Janet Jackson's success at
A&M Records, and Tom Whalley, who had been the head of
Capitol Records. Separately, Iovine, who had produced records by
Bruce Springsteen, and
John Lennon, among others, was trying to raise money to start a label. "I thought, 'Music is going to change,'" Iovine said in 1997. "'Young bands aren't going to be asking for me.' But I love working with the new thing. I always liked the part of the business that's the first time you hear something, and I knew I wasn't in that business anymore."
Iovine and Field were introduced by
Paul McGuinness, then
U2's manager. After a series of negotiations led by
David Geffen, they came to an agreement, and in 1990, Interscope Records was founded as a joint venture with
Atlantic Records. In a 1997 article in
David Wild wrote: "Interscope's start-up coincided with a period of incredible change in the music world. Nirvana had ushered in the alternative revolution... While the major labels were packed with rosters full of expensive veteran artists who had to redefine themselves for a new rock era, Interscope was in the business of signing new artists and could – as Iovine puts it – 'move on a dime.'"
Westwood, California, Interscope was run by "music men". It was a departure from the music industry practices of the 1970s and 1980s, when labels traditionally appointed lawyers and promotion executives to senior positions. A founding tenet of the label was that artists would have complete creative control.
Interscope's first release was "
Rico Suave" by Ecuadoran rapper
Gerardo in December 1990; the single reached #2 on the
Billboard Hot 100 charts in April 1991.
Primus' Interscope debut was released in May, followed by
Marky Mark and the Funky Bunch's
Music for the People in July. It included the #1 single "
Good Vibrations". Two days after first hearing his demo, Whalley signed
Tupac Shakur, and in November 1991, Interscope released
2pacalypse Now, Shakur's studio debut.
Interscope began to develop a significant presence in the
alternative genre in 1992. In addition to a second Primus album, the label released
No Doubt's self-titled debut,
4 Non Blondes'
Bigger, Better, Faster, More!, acquired and re-released
Rocket From The Crypt's
Circa: Now!, and, through a joint venture with
Nothing Records, the
Nine Inch Nails EP
Broken. However, Interscope's success with alternative and rock music was eclipsed by controversy which began in September 1992, when Vice President
Dan Quayle called on Interscope to withdraw 2pacalypse Now, stating that it was responsible for the death of a Texas state trooper, who was shot to death in April by a suspect who allegedly was listening to the album on the tape deck of a stolen truck when he was stopped by the officer. The trooper's family filed a civil suit against Shakur and Interscope, claiming the record's violence-laden lyrics incite "imminent lawless action."
Earlier in 1992, Interscope negotiated a $10-million deal with
Dr. Dre and
Marion "Suge" Knight to finance and distribute their label,
Death Row Records. It was initiated by McClain, who met Dre when he was recording his solo debut,
The Chronic. Original plans had called for the album to be released through Sony, but Sony passed on The Chronic due to "the crazy things going on around Death Row" and the contractual status of Dr. Dre. After hearing the album Iovine agreed to put it out, although doing so required a complicated distribution agreement with Priority Records, Dre's label as a member of
N.W.A. The Chronic was released in December 1992.
By the end of the following year, The Chronic had sold almost 3 million copies.
Snoop Dogg's debut
Doggystyle had sold more than 800,000 copies in its first week alone, and Primus and 4 Non-Blondes had released records which hit the US Top 20. In 1993, with an estimated gross of $90 million, Interscope became profitable ahead of projections.
Interscope further established its strength in the alternative and rock genres in 1994. A $2.5 million investment to establish a joint venture with
Trauma Records yielded three #1 Modern Rock tracks and a platinum album with
Sixteen Stone. The Nine Inch Nails album
The Downward Spiral went to #2 on the US charts and was widely acclaimed.
Portrait of an American Family,
The Toadies album
Rubberneck and Helmet's
Betty were commercially successful and critically embraced.
1995-2000: Gangsta rap controversy, acquisition by MCA, Aftermath and Shady
In May 1995, the controversy related to gangsta rap and explicit lyrics intensified as
U.S. Senate Majority Leader
Bob Dole accused Interscope of releasing music that glorified violence and degraded women. Among others, the label was criticized by
William J. Bennett, a former Education Secretary, and
C. DeLores Tucker, the chairwoman of the National Political Congress of Black Women. In September, Time Warner announced it would disassociate itself from Interscope by selling its half-interest in the company to Field and Iovine for $115 million.
 Ownership in Interscope was aggressively pursued by
Polygram and MCA. On December 1, 1995, the
Los Angeles Times noted that with five albums on that week's pop charts and sales of $350 million over the previous three years, "what may have been a smart move politically for Time Warner is now looking like a financial fiasco."
 In February, 1996,
MCA Records—then owned by
Seagram—bought 50% of Interscope for a reported $200 million. Under the agreement, Interscope retained complete creative control over the label's recordings. MCA was not required to distribute material that it deemed offensive.
Dre left Death Row in mid-1996 due to what was then reported as tension over the creative direction of the label, and founded
Aftermath Entertainment, a new joint venture with Interscope. In November that same year, Aftermath debuted with the album
Dr. Dre Presents the Aftermath. The Death Row deal remained in place until 1998, when Knight was imprisoned for parole violations.
In November 1996, with records by Bush, Snoop Dogg, No Doubt, and Tupac Shakur, Interscope became the first label in 20 years to hold the top 4 positions on the Billboard charts. Six additional Interscope releases were in the Top 100. The label was frequently criticized for overspending on artist acquisitions and joint ventures, however, with revenue for 1996 estimated at $250 million, it operated at a profit.
In 1996, MCA Music Entertainment was renamed
Universal Music Group. In 1998, the Universal Music Group parent company Seagram acquired
Polygram Records. MCA's
Geffen Records and PolyGram's
A&M Records were merged into Interscope, and in early 1999, Interscope Records began operating under the umbrella of
Interscope Geffen A&M Records, with Iovine and Field serving as co-chairmen.
Iovine's assistant (and former intern) Dean Geistlinger saw Eminem perform at the Rap Olympics in Los Angeles in 1997 and passed Eminem's CD on to Iovine; Iovine, in turn, passed it on to Dre. In February 1999, Interscope and Aftermath released
The Slim Shady LP.
 The album entered the charts at #2, and won two Grammy Awards.
 Later in 1999 Eminem and his manager,
Paul Rosenberg, founded
By the close of the decade, Interscope sales accounted for nearly one-third of Seagram's 27% share of the U.S. music market. Records by Eminem, Dre,
Limp Bizkit, Nine Inch Nails,
Smash Mouth and others generated an estimated $40 million in profit during the final six months of 1999.
2000–2010: Departure of Field, DreamWorks, Cherrytree Records and Beats
Interscope/Shady released Eminem's
The Marshall Mathers LP on May 23, 2000. The fastest-selling rap album in history, it sold 1.76 million copies in its first week.
 In October, Interscope began its relationship with U2 after it acquired the US rights to market and distribute the album
All That You Can't Leave Behind. Iovine had been trying to sign U2 since 1990.
In 2001, Field resigned as co-chairman of Interscope to start a new label. Described as an amicable parting, Field said he was "anxious to become an entrepreneur again." An agreement with Universal allowed Field to resign a year before his contract was set to expire.
 Conversely, Whalley, Interscope's president since 1998, accepted the position of chairman of Warner Bros. Records in May 2000 and was not released from his Interscope contract until it expired in August 2001.
The Eminem Show, in May 2002 and the soundtrack for Eminem's semi-autobiographical film
8 Mile in October; the two titles combined sold more than 11,000,000 records before the end of the year.
 In February 2003, Shady/Aftermath/Interscope had another record-breaking hit with
Get Rich or Die Tryin', the debut album by
50 Cent. It sold 872,000 units in five days.
 In April, it was announced that 50 Cent would sign and develop artists for release on
G-Unit Records, which would be marketed and distributed through Interscope.
In November 2003 Universal Music Group acquired
DreamWorks Records and in 2004 it was merged into Interscope Geffen A&M. The DreamWorks A&R staff was retained, and the label's artists were divided between Geffen and Interscope. Among others, Interscope inherited
The All-American Rejects, and
In March 2005, Interscope launched
Cherrytree Records with
Martin Kierszenbaum, its head of international operations. Kierszenbaum, also a producer and A&R executive, focused initially on developing artists from outside the United States.
Robyn were among Cherrytree's first artists.
Four of Interscope's releases were in the Top 10 of the year end sales charts in 2005:
The Massacre (50 Cent) at #1,
Encore (Eminem) at #2,
Gwen Stefani) at #6, and
How to Dismantle an Atomic Bomb (U2) at #8.
The Documentary appeared at #16, and
The Black Eyed Peas album
Monkey Business charted at #18.
In 2006, Dre and Iovine established
Beats Electronics. Dre had been approached by his attorney to start a line of sneakers, and when he told Iovine about the idea, Iovine said: "You know speakers, not sneakers." 'Beats by Dr. Dre Studio Headphones' were introduced in January 2008 at the annual
Consumer Electronics Show. "It took us two years to get them right, but when I heard I knew it was going to be big," Iovine said in 2010. "It's just like listening to a hit record." The marketing for Beats integrated endorsements from Interscope artists including
Pharrell, Lady Gaga, and
Lady Gaga's studio debut
The Fame was released in August 2008; it was re-released with eight new songs as
The Fame Monster in November 2009. Interscope held the top 4 positions on the 2009 year-end Hot 100 charts with The Black Eyed Peas' "
Boom Boom Pow" (#1) and "
I Gotta Feeling" (#4); Lady Gaga's "
Poker Face" charted at #2 and "
Just Dance" was at #3.
2010–Present: Lady Gaga, Madonna, departure of Iovine and appointment of John Janick
In June 2010 Eminem's
Recovery entered the Billboard charts at #1, his sixth album to do so.
Born This Way by Lady Gaga was released in May 2011, and debuted at #1 in 23 countries. In the US, with more than one million copies sold in its first week, it had the highest first-week album sales in five years. Four of the album's singles—"Born This Way", "Judas", "The Edge of Glory", and "You and I"—charted in the top ten of the Billboard Hot 100.
Van Halen in 2011. Both artists were previously signed to
Warner Bros. Records; both released their first records for Interscope in 2012.
In October 2012,
John Janick was named president and COO of Interscope Geffen A&M. The founder of
Fueled By Ramen, Janick had previous success with artists including
Jimmy Eat World,
Fall Out Boy,
Panic! at the Disco and
Paramore. At the time of his appointment, it was reported that Iovine had chosen Janick as his eventual successor—Iovine's attention had increasingly turned to Beats, which dominated the headphone market with 2012 revenues of $512 million.
 In May 2014, following Apple's acquisition of Beats, Iovine resigned. As anticipated, Janick was named chairman and CEO of Interscope Geffen A&M.
Six Interscope releases appeared in the Billboard year end album charts in 2014:
The Marshall Mathers LP 2 by
Lana Del Rey,
OneRepublic, Lady Gaga's
 In December 2014 it was announced that
Selena Gomez, previously signed to
Hollywood Records, had signed with Interscope.
Smoke and Mirrors debuted on the Billboard album charts at #1 in March 2015. A week after, Madonna's 13th studio album "
Rebel Heart" was released and debuted at #2. A week later,
Kendrick Lamar's album
To Pimp A Butterfly appeared at #1, a position it held for two consecutive weeks.
 Lamar won five Grammys in 2016.