A coalition of 20 commercial media and content businesses have written to the the government, raising their concerns about the BBC’s plans to introduce advertising around its UK audio content.
Writing to secretary of state for the Department for Culture, Media & Sport Lucy Frazer, the signatories have highlighted the impact of such a change for consumers, licence fee payers and the creative economy.
Signatories range from small businesses to some of the UK’s biggest brands, including Guardian Media Group, DMG Media, Newsquest, ITV, News UK, Sky and Reach.
The BBC’s services are currently funded by the licence fee as opposed to commercial media businesses which are largely funded by advertising. The broadcaster set out plans to introduce the changes in its annual plan in April 2024.
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According to the signatories, the move to introduce advertising on BBC podcasts would have a negative impact on the wider UK creative economy because it would reduce the ability of commercial operators to invest in content and services for audiences.
“Put simply, the market is not big enough to sustain the BBC entering as a whole or part advertising-funded entity. Commercial operators, that add breadth, diversity and to whom millions listen every week, could genuinely be made unviable,” the letter reads.
Broadcasters are already facing an advertising shortfall, with Channel 4 having cut jobs and ITV’s profits slumping.
“Audiences do not expect advertising around BBC content, which they have already paid for through the licence fee. The BBC receives significant funding from the licence fee and should not be seeking advertising in addition to this,” said Radiocentre CEO Matt Payton.
“The unique funding and position of the BBC also means that any change of this nature would have a serious impact on the broader market, as well as an inevitable negative impact on the wider UK creative economy,” he continued.
He added that industry opposition is “overwhelming” and urged the government “to act quickly and engage with Ofcom which has the power to intervene.”
