In August, after the release of Summer Days (And Summer Nights!!), The Beach Boys’ leader Brian Wilson was contemplating his next studio effort, which would turn out to be Pet Sounds. Capitol Records requested a new album for the holiday season (and “Pet Sounds” was just begining to be developed, and would not be prepared in time). Since The Beach Boys’ Christmas Album had been released the previous year, as had a live performance viaThe Beach Boys Concert, the “live party” idea was selected to reflect the togetherness of the holiday spirit. [...] Although presented as a live recording, the individual songs were recorded carefully, and laughter and background chatter was mixed in during post-production.
—Beach Boys’ Party, Wikipedia