Murray hires a bongo player, Todd, for the band without consulting them.  When they try and fire him, Bret ends up getting fired instead.  Bret then forms his own band with Demitri.  Demitri and Todd eventually leave them and form their own band with a successful hit, "Doggy Bounce."

Flight of the Conchords
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Flight of the Conchords Season 1 Episode 12 Quotes

Bret: Okay, I'm just going to say, "Dear Todd, thank you very much, but you can't be in the band anymore."
Jemaine: Umm. I don't think you should do it, man. You're too easily offended.
Bret: I can't believe you just said that.

Bret: Todd's not cool.
Murray: What do you mean? He's cooler than both of you put together. Look at him over there with all his friends. He's like the Pied Piper of cool. Pied Piper was cool wasn't he?
Bret: Pied Piper wasn't cool, he took all those kids into a cave.
Murray: No, I mean before that phase; when it was just the rats.