The band's genesis was in a Hollywood company called "Acme Soundtracks", a commercially unsuccessful venture founded in 1977 in Hollywood by songwriter Stan Ridgway. Ridgway wanted the company to provide soundtrack music for independently produced low-budget horror films; unfortunately, they found few takers for their services. Instead, Acme Soundtracks evolved into a band that played live shows, as Ridgway (vocals, harmonica, keyboards) enlisted Marc Moreland (guitar) followed by Marc's brother Bruce Moreland (bass), Chas T. Gray (keyboards), and Joe Nanini (percussion) to the line-up.