Placebo is an alternative rock band, formed in London, England in 1994 by singer-guitarist Brian Molko and guitarist-bassist Stefan Olsdal. The band were soon joined by drummer Robert Schultzberg, who left in 1996 due to conflicts with Molko and was replaced the same year by Steve Hewitt. Placebo gained exposure in 1997, after releasing "Nancy Boy", a song which Brian Molko described as "obscene". The band has sparked controversy at the beginning of their career because Molko wore dresses and make-up in public and talked openly about sex, sexuality and drug use.

Placebo founders Brian Molko and Stefan Olsdal had both attended the American International School of Luxembourg, without speaking to each other, as they were part of different social circles. The two met by chance in 1994, in London, England. At the time, Olsdal was taking guitar lessons and was on his way home when he met Molko at the South Kensington tube station. Molko, observing that Olsdal had a guitar strapped to his back, invited Olsdal to watch him perform at a local gig. On the strength of Molko's performance, Olsdal decided that they should start a band. The two formed as Ashtray Heart, named after the Captain Beefheart song of the same name. Molko, however, denied in 2009 that Ashtray Heart was the first name of the band, dismissing this as a rumour and claiming that the band had more names initially.  Originally, the two were unable to decide on a drummer. They played for a while with Steve Hewitt, a friend of Molko, but Hewitt had prior commitments to local band Breed. Robert Schultzberg assumed the position of drummer in late 1994.  The band eventually chose the name Placebo, due to its meaning in Latin, "I shall please". Molko has frequently stated in interviews that the name is a rejoinder to the 1990s cliche of naming one's band after a drug. In an interview, Molko stated:  It's a complex question to answer, really. As musicians you try to find a name for your band that represents you and you never really do, because, basically, names for bands lose their meaning after a while. They become a series of sounds that you associate with people in music. The most important thing for a name is that you can imagine forty-thousand people screaming it in unison.

Did they sign with a record label?