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From generasia
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A demo (frequently called a demotape, which has become a bit of a misnomer due to the popularity and accessibility of CD-Rs) is a recording made in a band's infancy to sell the band to a record label (whether it is major or not). These are typically hard to find, however some bands end up re-releasing them after a while. The quality is usually sub-par, due to unprofessional recording equipment and media, but many people are willing to pay high prices for them due to their usual rarity.