After Peer left RCA Victor in 1932, Oberstein began recording country musicians in the Southern United States.
The label became successful during the Depression era, and established the reputations of many country and blues musicians including The Delmore Brothers, Ernest Tubb, Big Bill Broonzy, and Roosevelt Sykes.
[6] He signed Benny Goodman and Tommy Dorsey to RCA Victor, also adding Glenn Miller and Artie Shaw to the roster at Bluebird.
As a record producer, Oberstein pioneered the practice of making deals with songwriters, music publishers and others, which eventually developed into what became known as "payola".
Oberstein also established the Hit record label, which found chart success with Louis Prima's "Angelina" in 1944.
[8] Later in the decade he sold many of his interests to the Pickwick International record company, while retaining his control of the Rondo label.
The business was accused of receiving financial backing from a jukebox owning syndicate that controlled around 150,000 of the pay-for-play record playing machines causing large music publishers concerned over royalty collection.