During the Summer of 1974, Alan Parsons met Eric Woolfson in the canteen of Abbey Road Studios. Alan had recently engineered Pink Floyd's Dark Side Of The Moon and had already produced a number of acts for EMI Records. Eric had been working as a manager and session pianist but was also a songwriter and had already composed material for a concept album idea based on the work of Edgar Allan Poe.

Alan asked Eric to become his manager and Eric managed Alan's career as a producer/ engineer through a string of successes including Pilot, Steve Harley, Cockney Rebel, John Miles, Al Stewart, Ambrosia and The Hollies. Alan commented at the time that he felt frustrated in having to accommodate the views of some of the artists which he felt interfered with his production. Eric came up with the idea of making an album based on developments in the film business, where directors such as Alfred Hitchcock and Stanley Kubrick were the focal point of the film's promotion, rather than individual film stars. If the film business was becoming a director's medium, Eric felt the music business might well become a producer's medium.

Recalling his earlier Edgar Allan Poe material, Eric saw a way to combine their respective talents:
Alan - engineer/ producer.
Eric - songwriter/ lyricist/ musician.

The Alan Parsons Project was born.