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Because 45s were geared for radio, they were all 'middle,' and you couldn't cut a lot of [bass] onto the record, the twelve inch record allowed more bass and made records suitable for night club play.
The first promotional copies appeared in 1975 and the first commercial release was the 1976 release 'Ten Percent' by Double Exposure, on the Salsoul label.
Salsoul released the first commercially available twelve inch record, followed by some 300 more twelve inches and LPs.