Anyone know the rationale behind big record labels like Motown and Chess setting up subsidiary labels such as gordy, vip, checker, cadet.

Was it for the purposes of marketing and distribution?

One theory is that radio DJs didn't want to or wasn't allowed to play let's say 15 records from the same label during an hour, but if they were on different labels - i.e. VIP/Tamla/Soul/Miracle/Motown/Gordy or Duke/Pecock or Chess/Cadet/Checker - it wouldn't be as obvious by just reading a playlist that the records came from the same sources.

One theory is that radio DJs didn't want to or wasn't allowed to play let's say 15 records from the same label during an hour, but if they were on different labels - i.e. VIP/Tamla/Soul/Miracle/Motown/Gordy or Duke/Pecock or Chess/Cadet/Checker - it wouldn't be as obvious by just reading a playlist that the records came from the same sources.

Seb's right,

Some Radio stations kept a close eye on their DJs playlists due to the 'Payola" scandals as well. Many DJ's became embrioled in Record Companies, started their own or became partners with record companies. The whole scenario was open to abuse. The whole success of a record "back in the day" was dependent on airplay. DJ's were pretty powerful people back then. Much better if the promotion guy turned up with 5 records on different labels, even if they were from the same parent company.

Seb's right,

Some Radio stations kept a close eye on their DJs playlists due to the 'Payola" scandals as well. Many DJ's became embrioled in Record Companies, started their own or became partners with record companies. The whole scenario was open to abuse. The whole success of a record "back in the day" was dependent on airplay. DJ's were pretty powerful people back then. Much better if the promotion guy turned up with 5 records on different labels, even if they were from the same parent company.

Simular to Nsoul records today and Djs