Blue Thumb Records was started in 1968 by Bob Krasnow (who had previously run the King and Kama Sutra labels) along with former A & M Records (US) execs Tommy LiPuma & Don Graham. The label was distributed by ABC Records until 1974, when ABC purchased the label outright from Krasnow.

Blue Thumb continued to be used as an imprint on some ABC releases until 1979, when MCA Records took over and folded ABC and all affiliated labels.

MCA later revived Blue Thumb as an imprint of GRP. Following a series of label merges and buyouts, Blue Thumb and GRP are both labels in the Verve Music Group under the larger multi-national Universal Music Group.