Although the 1927 Royal Commission into radio recommended full nationalisation in the style of the BBC, the conservative government of the time chose to outsource instead. In 1929 a consortium of commercial entertainment interests came together to supply radio programs for broadcast on the former "A-class" transmitters contracted to the Federal Government's National Broadcasting Service. This group, known as the Australian Broadcasting Company, comprised Greater Union Theatres, Fullers' Theatres (Benjamin John Fuller and John Fuller Jnr), and music publisher Frank Albert. The company's Chairman of Directors was Stuart F. Doyle from Greater Union and its manager Frank Marden.
By 1930 the consortium realised that the business was making little or no profit, a factor which forced it to restrict rather than expand its resources. This caused the government to rethink its policy and subsequently announce its intention to end the arrangement when the contract expired in mid-1932. As each of the A-class licenses expired from 1929 onwards, the government acquired and then maintained the station's transmitters and studios, while the programming was supplied by the Australian Broadcasting Company.
When the Government's contract with the Australian Broadcasting Company expired on 30 June 1932 the programming for the National Broadcasting Service was provided by the newly established Australian Broadcasting Commission.
The Australian Broadcasting Company continued as a separate entity, however, eventually acquiring interests in "B-class" licences and was prominent in the industry until at least the 1950s. Among those associated with the company during its early years were producer Hugh Huxham, Oswald Anderson, music directors/conductors Professor Bernard Heinze, Albert Cazabon, Alf J. Lawrance, Howard Carr and E. J. Roberts.
