Metropolis Records grew out of a small record store located in the popular South Street area of Philadelphia, Pennsylvania. Digital Underground, opened in April of 1991, and specialized in the relatively young genres of Gothic and Electro-Industrial music. Although the scene was small, it didn't take long before people were seeking out Digital Underground from across the entire middle eastern corridor. In 1992, the record store expanded to become a mail order company as well. By this time, records were being directly imported from major industrial labels in Europe, thus offering a much wider selection of imported music.

By 1993, store manager Dave Heckman realized that he could offer this music at even lower prices by forming a record label that would release these overseas CDs in America at domestic prices. He began the process of contacting overseas labels, not for the purpose of importing their products, but for the purpose of licensing their releases for his own record label. Dave's first licensing came from the Electro-Goth band, Love Is Colder Than Death. "Teignmouth," the band's and the label's first release, was issued in May of 1994. 

Metropolis Records was born.