Decca Records famously rejected The Beatles on January 1, 1962, in what is now considered one of the biggest mistakes in music industry history. The band had traveled from Liverpool to London for an audition at Decca's studios, where they recorded fifteen songs under the guidance of Mike Smith, a talent scout for the label.

The rejection came with the now-infamous statement from Dick Rowe, Decca's A&R (Artists and Repertoire) representative, who said, "Guitar groups are on their way out, Mr. Epstein." This was his response to Brian Epstein, The Beatles' manager, who had been confident about securing a recording contract for the band.

During the audition, The Beatles performed a mix of covers and original compositions, including "Money," "Like Dreamers Do," and "Three Cool Cats." However, the band's performance was reportedly nervous and not their best, partly due to the long drive from Liverpool to London the previous day and their unfamiliarity with the studio environment.

Besides Decca Records, several other labels also passed on The Beatles, including Columbia, Pye, and HMV. However, Decca's rejection stands out as the most notable because the label instead signed Brian Poole and the Tremeloes, who had auditioned the same day as The Beatles.

This rejection turned out to be a blessing in disguise. Shortly after, The Beatles signed with EMI's Parlophone Records, where George Martin became their producer. This partnership would prove instrumental in developing the band's signature sound and launching their unprecedented success.

The Decca audition tapes, while initially a symbol of rejection, have become valuable artifacts of music history. They provide a unique glimpse into the early sound of The Beatles before their breakthrough success and serve as a reminder that even the greatest artists can face significant setbacks early in their careers.

Today, this incident is often cited as one of the worst business decisions in music history, alongside Decca's Dick Rowe becoming known as "the man who turned down The Beatles." However, Rowe later redeemed himself by signing The Rolling Stones, acting on a recommendation from George Harrison himself.

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