Taylor was also a catalyst in Harry Nilsson's musical career; hearing Nilsson's song "1941" on a car radio, he bought a case (twenty-five copies) of his album Pandemonium Shadow Show, sending copies to different industry people – including all four Beatles, who became enamored of his talent and invited Nilsson to London.
Among the original songs by Nilsson, were one by Phil Spector (who had earlier co-written a song with Nilsson), Jeff Barry and Ellie Greenwich, "River Deep - Mountain High", and two by The Beatles; She's Leaving Home and "You Can't Do That", the latter in an arrangement that quoted twenty other Beatles lyrics.
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It was the first product of his three-year, $50,000 recording contract with RCA Records, and was recorded in their Hollywood studio.
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With the successes of Everybody's Talkin' and The Point! creating demand for Nilsson recordings, a reissue of his first two RCA Victor albums (Pandemonium Shadow Show and Aerial Ballet), then out of print, was considered.