On 14 March 2013, the duo officially left Parlophone after 28 years and entered into a new arrangement with Kobalt Label Services for the release of their 12th album, their first release on their own music label. Tennant stated at the time of the announcement:
We'd like to thank everyone we've worked with at Parlophone over the last 28 years both in the UK and abroad. When we signed to the label in 1985 we had no idea how long and successful a relationship we were embarking on. However it is also exciting now to commence a new phase working with a new team in a new business structure and we look forward to a creative and equally fulfilling relationship with Kobalt.
Spaghetti Records was launched in September 1991 for side-projects.
The first single to be released on Spaghetti was by a 21-year-old Scottish singer, synthesizer player and songwriter called David Cicero. The single was called "Heaven Must Have Sent You Back to Me". Cicero went on to release four more singles and an album on Spaghetti.
The label's logo consists of the word SPAGHETTI laid out vertically in extremely tall extra-thin type, to mimic a strand of spaghetti.
In May 2003, the Pet Shop Boys launched two more record labels called Olde English Vinyl and Lucky Kunst. These new labels were part of Spaghetti and have seen releases by Atomizer, Pete Burns and Sam Taylor-Wood.