There is such a thing as selling out. It's altering something to maximize profit, usually at the cost of something else.
As an insult it's sometimes accurate and sometimes inaccurate. To complicate things further it's hard to know why someone makes a change. Increased sales may be a co-oincidence or a result of a band improving themselves.
I guess, by definition, hiring a producer is selling out in almost every case. Their job is to make the art marketable, or lacking any artistic talent, just market.
Generally when your favorite band makes a big change that you hate and it gets them more airplay you are going to accuse them of selling out.
When a band makes a change, becomes popular, and you start liking them, you are going to defend them.
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