A lifelong music fan, Katz grew up in Brooklyn listening to Chuck Berry and Fats Domino on a transistor radio. He had friends in the band Jay and the Americans who were his connection to the music business. The band worked with Jerry Leiber and Mike Stoller, who produced hit records for the Coasters and the Drifters. After Katz spent time with Leiber and Stoller in the studio, he realized he wanted to be a record producer. His first job after graduating from school was with singer Bobby Darin. Darin admired Bobby Kennedy, and when Kennedy was shot, Darin dropped out of music. Katz found work at Avco Embassy, but two years later the company closed. A friend in Los Angeles who was working for Dunhill Records suggested Katz write a letter to Jay Lasker, the head of Dunhill, to ask for a job. The letter amused Lasker, and he hired Katz.