Media giant Global has strongly criticised the BBC’s plans to introduce advertising across its UK radio programmes and audio output for the very first time since its inception in 1922.
The LBC and Capital Radio owner has said that it is “outraged and surprised” at the unprecedented decision, as the public service broadcaster looks to find innovative ways to diversify its revenue streams.
With the license fee increasingly under threat in recent years due to friction with successive Conservative governments, the UK’s original media company is now considering running adverts during podcasts on third-party platforms, such as Apple and Spotify from later this year.
Podcasts running across its own BBC Sounds platform will remain ad-free – as will all news and current affairs content.
Iconic programmes such as The Archers, In Our Time or Desert Island Discs would not initially be affected, but may see advertising introduced further down the line.
On the changes, a spokesperson said: “Listeners will continue to hear BBC audio without ads on BBC Sounds, but as many of our podcasts are available on commercial platforms like Apple and Spotify where adverts are the norm, we look to carry them in some of our content to generate more revenue to support the BBC, licence fee payers, our suppliers and rightsholders.”
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Speaking to the Lords Communications Committee last week, Global chief strategy officer Sebastian Enser-Wight expressed deep concern that the plans could create a “market distortion” as the BBC will be using “licence-fee payers’ money to generate content that is then supported by advertising”.
Expressing strong concerns around competition rules both Enser-Wright and News Media Association CEO Owen Meredith have cautioned against the potential unfair advantage the broadcaster would have over its competitors by “muscling in to the UK advertising marketplace…wreaking havoc on commercial players.”
Enser-Wright continued: “This is the first time we will have ever seen the BBC carrying advertising on its content that is also available through BBC platforms. So this is analogous to BBC One putting all of its content on YouTube and telling the viewers they can either watch it on YouTube and it will be ad-supported or they can watch it on iPlayer.
“So we are surprised to hear the BBC think this is something that will be approved and we would very much hope that Ofcom or indeed government will intervene.”
