FM radio began broadcasting in Sydney in 1974. FM radio employs technology that provides a much higher quality, less distorted sound than AM broadcast.
FM radio also created space on the airwaves for a greater variety of commercial stations, as well as small niche stations. In 1975 the government funded the development of several multicultural radio stations. Two of these stations, 2EA in Sydney and 3EA in Melbourne, were eventually combined to form the Special Broadcasting Service (SBS).