In 1929 the company won the contract to supply
radio programmes for broadcast on the "A-class" transmitters contracted to the
Federal Government's National Broadcasting Service. The Royal Commission of 1927 had recommended full nationalisation in the style of the
BBC, but the conservative government of the time chose this
out-sourced approach instead. As each of the "A-class" licences expired during 1929 and 1930, the Commonwealth acquired and then maintained the station's transmitters and studios through the
Postmaster-General's Department, while the programming was supplied by the Australian Broadcasting Company. The ABC was originally funded through Licence fees which enabled radio programming. Listeners had to purchase a licence to be able to listen to the radio broadcast. From the 1920s to the 1970s, the earnings from these licences were used to finance the production of radio and television services.
A Class Class A stations were funded by licence fees paid by listeners, as well as by limited advertising. In 1929, the Australian Government acquired all class A stations, which were henceforth operated by the Postmaster-General's Department. Of all the stations broadcast by the ABC, station 3LO was the most profitable. Located in Melbourne, Victoria, 3LO was both an A-class and B-class radio station. Licence revenues for the station were immediately returned to the broadcasters after the government removed deductions and fulfilled royalty payments to the AWA. In 1928, a senior colleague working for 3LO estimated that the station was making an annual profit of around AUD 90,000 - in comparison to its initial investment of AUD 11,500. According to Inglis, not all stations did nearly as well as 3LO. 6WF located in Perth wasn't doing well in 1926. The station was aimed at country people, but the farming families who would hear its programs didn't resonate with its content. This meant that not many in the WA audience held radio licences. In 1928, the Post Master General's office had to rescue 6WF by buying its land, renting its premises, and paying staff to keep working. 6WF was the first radio station managed by the Government, due to its lack of succession. ==Controversy==