Joseph began writing and playing music in his early teens, after inheriting an electronic keyboard from his aunt. At age 16, he played bass in a blues band called Frankie Starr and the Chill Factor, which disbanded by 1995. Initially, Arthur sought to become a noted bass guitarist, stating: "I never started singing until I was in my early 20s. I remember thinking, 'OK - I am not a singer, I am a musician.' I wanted to be this like heroic bass player so I listened to people like Jaco Pastorius, to Bitches Brew over and over again. And then like Nirvana came out and I was blown away and then I got into Bob Dylan. Around that time I started playing acoustic guitar and realized I could actually write songs if I wasn't playing complicated bass lines."  Joseph graduated from Firestone High School in 1990 and continued developing his music. In the early 1990s, Arthur relocated to Atlanta, Georgia, continuing to record home demos, playing local clubs and working as a guitar salesman at Clark Music Store.  In 1996, Peter Gabriel's A&R associate Harvey Schartz presented Gabriel with a demo of Arthur's first EP, Cut and Blind. Gabriel and Schwartz arranged a live audition at The Fez nightclub in New York City, and Arthur flew up from Atlanta. The night was a success; not only was Lou Reed a guest in the audience, but within a few months Arthur was officially signed, making him the first American recording artist signed to Gabriel's label. Arthur recorded his debut album at Gabriel's Real World Studios in England with producer Markus Dravs (Bjork, Coldplay, Arcade Fire). The debut album Big City Secrets was released worldwide in spring 1997, and Arthur joined Gabriel's WOMAD tour in Europe. Big City Secrets displayed Arthur's often angsty and emotionally wrought lyrics coupled with diverse instrumentation, which he himself described as "someone struggling to heal over experimental folk-rock", but went virtually unnoticed by the mainstream. Two years later, he recorded an EP called Vacancy, which earned him a Grammy nomination in 2000 for best recording package.

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