The label was founded in 1993 by Thomas Waber and Michael Schmitz[1] and started its publications re-issuing albums of new American prog metal acts like Symphony X and Shadow Gallery for the European market and then signing important prog artists like Steve Hackett. Inside Out signed a worldwide distribution contract with the German music company SPV and branched out with the U.S. division InsideOut US, based in Pittsburgh, Pennsylvania.
In 2009, SPV had to file for bankruptcy,[2] and Inside Out partnered up with Century Media Records, which had secured a worldwide distribution contract with EMI.[3]
For some time, Inside Out also published digitally reworked re-releases of albums from the Krautrock era (for example, from the band Kraan) under the sub-label Revisited Records.
The surrounding area of the label headquarters has often served as an inspiration for the album art. For example, the petrol dispenser of Spock's Beard Octane cover is in Kleve as is the lake on Threshold's Subsurface cover.
A characteristic feature for the label's releases is their lavish publication work. Several albums appear in special editions, containing extensive bonus materials such as bonus tracks, extended artwork and/or multimedia segments.
The label's founder, Thomas Waber, won the "Guiding Light" award at the 2013 Progressive Music Awards.[4]
The label signed Dream Theater in December 2017, arguably the biggest signing in the label's history at that point.[5]