In June 1975, the Jackson 5 signed with Epic Records, a subsidiary of CBS Records and renamed themselves the Jacksons. Younger brother Randy formally joined the band around this time, while Jermaine choose to stay with Motown and pursue a solo career. They continued to tour internationally, releasing six more albums between 1976 and 1984, during which Michael was the lead songwriter, writing hits such as "Shake Your Body (Down to the Ground)", "This Place Hotel", and "Can You Feel It". In 1978, he starred as the Scarecrow in the musical, The Wiz, a box-office disaster. It was here that he teamed up with Quincy Jones, who was arranging the film's musical score. Jones agreed to produce Jackson's next solo album, Off the Wall. In 1979, Jackson broke his nose during a complex dance routine. His subsequent rhinoplasty was not a complete success; he complained of breathing difficulties that would affect his career. He was referred to Dr. Steven Hoefflin, who performed Jackson's second rhinoplasty and subsequent operations.
Jones and Jackson produced the Off the Wall album together. Songwriters for the album included Jackson, Rod Temperton, Stevie Wonder, and Paul McCartney. Released in 1979, it was the first solo album to generate four U.S. top 10 hits, including the chart-topping singles "Don't Stop 'til You Get Enough" and "Rock with You". It reached number three on the Billboard 200 and eventually sold over 20 million copies worldwide. In 1980, Jackson won three awards at the American Music Awards for his solo efforts: Favorite Soul/R&B Album, Favorite Soul/R&B Male Artist, and Favorite Soul/R&B Single for "Don't Stop 'Til You Get Enough". That year, he also won Billboard Year-End for Top Black Artist and Top Black Album and a Grammy Award for Best Male R&B Vocal Performance, also for "Don't Stop 'Til You Get Enough". Jackson again won at the American Music Awards in 1981 for Favorite Soul/R&B Album and Favorite Soul/R&B Male Artist. Despite its commercial success, Jackson felt Off the Wall should have made a much bigger impact, and was determined to exceed expectations with his next release. In 1980, he secured the highest royalty rate in the music industry: 37 percent of wholesale album profit.
Jackson's attorney John Branca noted that Jackson had the highest royalty rate in the music industry at that point: approximately $2 for every album sold. He was also making record-breaking profits from sales of his recordings. The videocassette of the documentary The Making of Michael Jackson's Thriller sold over 350,000 copies in a few months. The era saw the arrival of novelties like dolls modeled after Michael Jackson, which appeared in stores in May 1984 at a price of $12. Biographer J. Randy Taraborrelli writes that, "Thriller stopped selling like a leisure item—like a magazine, a toy, tickets to a hit movie—and started selling like a household staple." In 1985, The Making of Michael Jackson's Thriller won a Grammy for Best Music Video, Longform. In December 2009, the music video for "Thriller" was selected for the National Film Registry by the Library of Congress, "Thriller" is the first (and currently only) music video ever to be inducted.
Time described Jackson's influence at that point as "Star of records, radio, rock video. A one-man rescue team for the music business. A songwriter who sets the beat for a decade. A dancer with the fanciest feet on the street. A singer who cuts across all boundaries of taste and style and color too". The New York Times wrote that, "in the world of pop music, there is Michael Jackson and there is everybody else".
On March 25, 1983, Michael Jackson reunited with his brothers for a legendary live performance which was taped for a Motown 25: Yesterday, Today, Forever television special. The show aired on May 16, 1983, to an audience of 47 million viewers, and featured the Jacksons and a number of other Motown stars. It is best remembered for Jackson's solo performance of "Billie Jean" which gave him his first Emmy nomination.Wearing a distinctive black sequin jacket and golf glove decorated with rhinestones, he debuted his signature dance move, the moonwalk, which former Soul Train dancer and Shalamar member Jeffrey Daniel had taught him three years before. The performance almost did not happen with Jackson originally turning down the invitation to perform, however at Berry Gordy's request, Jackson agreed to do the show. The Jacksons' performance drew comparisons to Elvis Presley's and The Beatles' appearances on The Ed Sullivan Show. Anna Kisselgoff of The New York Times later wrote, "The moonwalk that he made famous is an apt metaphor for his dance style. How does he do it? As a technician, he is a great illusionist, a genuine mime. His ability to keep one leg straight as he glides while the other bends and seems to walk requires perfect timing." Berry Gordy said of the performance, "from the first beat of Billie Jean, I was mesmerized, and when he did his iconic moonwalk, I was shocked, it was magic, Michael Jackson went into orbit, and never came down.
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