Maybe it's a carry-over from the 60's-70's time frame....in those days, it was a useful tool to get an idea of what a new artist may sound like; like Capricorn, which had the Allman Bros and other southern rock bands. Of course one totally different band of the time was on there, Sea Level, which I truly loved their music but it was waaay out of the Capricorn box; I would never had heard of them, tho, if not for the label.
Of course that whole label ended up badly anyway.....won't go there.
Another example is Atlantic ( sub division was Atco)- at the time, I thought, man if you've gotten signed by Atlantic/Atco you must be something great; those days they threw a lot of bucks at developing artists and promoting them. Like Led Zep- and lots of other styles of music, but generally good bands, like Rush, Matchbox 20, Genesis, Average White Band, Clapton, etc.
But they are obviously not what they used to be...just go to wikipedia and type in atco, look at the artist list. Wow.
With indie, self production, and "boutique" labels, the big labels seem to be more just about distribution than artist development...I doubt many major labels these days would put up with a Rolling Stones type band that needed years to develop.
Just my 2c...Clearly don't make buying decisions based on labels anymore.
Count me as a record geek, Leslie

TonyY