The recording contract they won on _"The Sing-Off"_ was with a company named "Epic," a minor subsidiary of Sony. Then Epic reneged on the contract just a week after they'd all gotten apartments in L.A., ready to begin recording. So they pooled their winnings, lived frugally, and published to KZfaq, where they quickly picked up a following. Sony noticed their popularity on KZfaq and offered them a contact with Madison Gate, another minor subsidiary - this one specialized in movie soundtracks. "Daft Punk" was published on their SECOND album, "PTX Volume 2," so they'd already been with Madison Gate a while when they made it. Yes, they recorded the audio in a closet, because it had good acoustics. Why not a studio, you ask? Well, what use does a company that publishes movie soundtracks have for a studio? Madison Gate DID hook them up with an exceptional filming company, however, FifGen Films. When the venue they'd arranged for filming "Daft Punk" fell through at the last minute it was someone from FifGen who suggested that they get some black sheets and set up a sort of photo booth in the kitchen. Yes, their budget was around $400; I don't think paying FifGen came out of that budget. Mostly it went for makeup (presumably including contacts and a blue tinsel wig) and the ring light and sheets. So yes, they were still struggling at the time, but they weren't completely on their own and the filming was done by professionals.

I agree