New York group the Velvet Underground are the most seminal band in alternative rock music. Famously, while their debut album was a commercial flop, it has been said that the few people who bought it were all inspired to start a band. That album, The Velvet Underground & Nico (1967), is now widely considered to be one of the most important albums in the history of rock music. The Velvet Underground were managed by renowned pop-artist Andy Warhol, who designed the now-iconic 'peeling banana' cover for the album, and insisted his German model protégé Nico was to sing on three songs. Her unique, deep voice and Lou Reed's deadpan vocals discussed taboo themes over John Cale's droning viola and deliberately detuned guitars, for a distinctive VU sound that pre-empted various strands of alternative rock by at least a decade.
Their second album, White Light/White Heat (1968), was even more experimental, for example featuring a 17-minute distorted guitar jam called "Sister Ray". Their third album, named simply The Velvet Underground (1969), marked a noticeable change in direction after Cale was replaced by Doug Yule. With hushed acoustic-led ballads, and only one experimental track, it was their most accessible album yet. In 1970, they released Loaded, so called because it was supposed to be 'loaded with hits'. It wasn't -- it was yet another commercial flop -- but the 3-minute sunny pop song formula made it the 'straightest' record they ever made. Each of these four albums recorded with Lou Reed at the helm are considered to be classics of the time. Ironically, as rock music elsewhere moved from optimistic pop with catchy melodies in the mid-60s hippie heyday to a post-'Summer of Love' pessimistic reality check at the turn of the decade, the Velvet Underground had subverted the dominant trend by moving in the opposite direction.
After Reed left to pursue a successful solo career, Doug Yule continued under the original name and released Squeeze (1973). It was universally derided, and has been disowned by many Velvet Underground fans who insist it should be considered a middle-of-the-road Yule solo album. Squeeze is yet to be issued on CD. After its commercial and critical failure, Yule disbanded what was left of the group.