Sky Records was founded in 1975 by Günter Körber after he left Metronome Musik, the parent company of influential krautrock/Kosmische label Brain Records.

The success of the albums Cluster & Eno in 1977 and After the Heat in 1978 helped put Sky on a solid financial footing.

Other former Brain artists signing with Sky included Thirsty Moon and Michael Rother shortly after his departure from Neu!

Along with several subsequent Cluster albums, group members Dieter Moebius and Hans-Joachim Roedelius also released several solo albums and collaborations on Sky.

Other notable artists who recorded for the label include Conrad Schnitzler, Asmus Tietchens, Harald Grosskopf, Adelbert von Deyen, Nik Tyndall, Earthstar, Serge Blenner, Insane Jane, and Dieter Schütz.