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The band formed at Camp Rock, where they used to go every summer when they were younger. Once they reached big, their music was, as Shane describes, "cookie cutter popstar" stuff. This seems to make Shane rebel, which is why Nate and Jason decide to send him to Camp Rock to work, hoping that he'll get back to his musical roots.
While at Camp Rock, Shane develops a different style of music, and the band debut it at the Beach Jam in the movie.