"Scary Monsters" was Bowie's final studio album for RCA Records, who had been Bowie's label since "Hunky Dory" (1971). Bowie had grown increasingly dissatisfied with the label, whom he felt was "milking" his back catalogue, according to biographer Nicholas Pegg. Bowie was also eager for the expiration of his 1975 severance settlement with his old manager Tony Defries, which was due to expire in September 1982. Although RCA was willing to re-sign, alongside Columbia and Geffen Records, Bowie signed a new contract with EMI America Records for an estimated $17 million.