GANDHINAGAR: In a significant move, a coalition comprising commercial media businesses, broadcasters, audio producers, and publishers has written a letter to Thangam Debbonaire, the Shadow Secretary of State for Culture, Media & Sport. The letter, dated June 13 raises alarms about the BBC’s proposal to introduce advertising on UK podcasts via third-party platforms.
The coalition argues that the BBC’s plan threatens the financial ecosystem that sustains the UK’s creative sector. Currently, this sector thrives on a combination of advertising, subscriptions, and the licence fee, ensuring a diverse array of content and economic resilience.
“The BBC, funded by the licence fee, is integral to our successful mixed media ecology,” the letter states. “However, allowing the BBC to erode advertising revenues for commercial investors could be detrimental.”
The BBC’s services are currently funded by £3.8 billion in licence fee income. Commercial media businesses, which primarily rely on advertising revenues, would face significant erosion of these revenues if the BBC also sought to generate advertising. This shift would inevitably diminish the capacity of commercial operators – spanning radio, news, television, and podcasting – to invest in content and services for audiences.
Last month, Radiocentre, the industry body for commercial radio, joined a broad coalition of media and content businesses in writing to Lucy Frazer, secretary of state for the Department for Culture, Media & Sport. The coalition expressed their concerns about the BBC’s plans and requested that Ofcom conduct an urgent review of the audio and podcast market.
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The coalition emphasizes that the BBC’s new approach would deviate from its traditional model, where content is funded by the licence fee and remains advertisement-free. Should Ofcom approve these plans, the BBC would enjoy dual revenue streams, potentially destabilizing the market, especially for small, independent podcast producers.
The letter warns, “The nascent UK podcasting market cannot sustain the BBC’s entry as an advertiser-funded entity. Commercial operators, essential for media diversity and audience engagement, could face viability threats.”
Previously, the coalition had addressed these concerns to the Secretary of State for Culture, Media & Sport, garnering extensive media coverage. With the general election slated for July 4, they now seek the attention of the Shadow Secretary to underscore their ongoing apprehensions.
The coalition remains hopeful for a post-election dialogue with Debbonaire to further deliberate on this pressing issue.
Signatories include: Audioboom, Bauer, COBA, DMG Media, Global, Goalhanger, Guardian Media Group, News UK, News Media Association, PPA, Podmasters, Radiocentre, Reach, Telegraph Media Group, and Tortoise.