Established in the late 1970s as an independent marketing company, Thirsty Ear pioneered the concept of specialised marketing to the yet-unnamed alternative music world in the US.

In the mid 1980s, Thirsty Ear partnered with English labels 4AD and Beggars Banquet and established their US operations out of Thirsty Ear's offices. The Beggars Banquet alliance proved fruitful and continued for ten years, firmly establishing them as one of the premier English independent labels in the US.

In 1990, Thirsty Ear made its emergence as a record label of its own, quickly accelerating its position and becoming one of the top alternative independent labels within the US music industry.