In 1993, Hankerson formed the label, and Aaliyah became its first signee. At the time, Hankerson was managing R. Kelly, and was able to get his label Jive Records to distribute Blackground's releases. In 1996, Blackground obtained a lucrative distribution deal with Atlantic Records, just before the release of Aaliyah's second album, One In A Million.

Often playing distributor hopscotch, in 2000, Blackground switched over to Virgin Records. One year later, it moved again, this time finding a home at Universal Motown Records Group. In 2003, JoJo was signed on Blackground and she is the youngest artist who signed on Blackground and first Caucasian. As of October 2009, Blackground will be distributed by Interscope Records, also part of Universal Music Group. In 2010, Blackground partnered with former Universal Motown Senior Vice President of Promotion Gary Marella to distribute his new label Roma Records. Their first signing is Jordy Towers, who formerly went by the name Optimus.