After fierce pushback the BBC has dropped plans to sell adverts on its podcasts in the UK. 

In 2024, BBC Studios set out proposals to sell adverts in a push to make more money to support the corporation away from its traditional licence fee income. But companies in the commercial radio and podcasting industry hit out at the move, warning that the adverts would cannibalise their revenues, with the publicly funded and biggest British broadcaster posing unfair competition.

The BBC is preparing for talks with the government over a future funding model ahead of the renewal of its charter in 2027. Some politicians and media pundits have called for the BBC to increase commercial revenues, including through advertising and subscription, in a shift away from taxpayer funding. But commercial rivals have warned that they would not want the extra competition in an already tough advertising market.

Owen Meredith, chief executive of News Media Association, a trade body, said at the time of BBC Studios’ announcement last year that the plan would “profoundly distort competition, wreaking havoc on commercial players right across the media and advertising sector”.

BBC Studios can already sell advertising against audio and TV content outside of the UK.

The BBC said in a statement: “We have listened to feedback and having considered the options carefully, we have decided to rule out placing adverts around BBC licence-fee funded programmes on third party podcast platforms in the UK.”

In response to the BBC’s Annual Plan, and to the announcement that they will not be pursuing podcast advertising on license fee funded content in the UK, AudioUK has made the following statement:

We remain strong supporters of the BBC and its vital role within the UK’s podcast and audio industry ecosystem. The BBC plays an important part in the industry, and we continue to support its funding through the licence fee. The BBC’s relationship with independent podcast and audio producers – particularly in terms of commissioning – has many strengths, though, like any partnership, it also has areas for improvement. We continue to work closely with the BBC, in a future-facing manner, in order to ensure fair treatment for independent producers, including equitable commissioning terms and the opportunity to pitch for and develop the

BBC’s biggest shows. This is essential to harnessing the creativity and production excellence that thrives within the independent sector. We remain concerned about the BBC’s entry into the UK podcast advertising market through content produced by the BBC Studios. One year on from the launch of the BBC Studios dedicated audio unit, our initial concerns about its inclusion in the UK market have not been alleviated. While the BBC has stated in its Annual Plan that it will not carry advertising on licence fee-funded content, the presence of a commercially powerful, BBC-owned entity in the podcasting ad space continues to raise significant concerns. The UK podcast industry is growing steadily but remains relatively young. With over 200 small and medium-sized enterprises (many of them regionally based and representing diverse communities) having built this market from the ground up. The potential disruption caused by such a large player entering the space without full consideration of its impact on these businesses is troubling.

AudioUK members represent a broad cross-section of the podcasting and audio industry, from those commissioned by platforms including the BBC, Audible, and Wondery, to fully independent producers who generate revenue through advertising and IP ownership. What unites them is a shared belief in the ‘all ships rise’ principle, collaborating to grow the industry for everyone.

We believe there is a clear opportunity for BBC Studios to play a more constructive role in supporting the wider podcasting ecosystem. We would welcome greater transparency and research from the BBC on how it intends to help grow the market, alongside AudioUK and the many other organisations and businesses working hard to attract advertising investment into podcasting. We also call for increased
engagement from BBC Studios with AudioUK and our members, with a view to exploring meaningful opportunities for collaboration.

Chloe Straw, AudioUK CEO, added: “Whilst the UK podcasting industry is thriving and growing rapidly, it remains relatively young and has been largely built and driven by the creativity, innovation and investment of over 200 SMEs, many of them regional and diverse. As BBC Studios continues to expand into the wider audio and podcast space, we are keen to see greater engagement with the industry, not only to understand the potential impact of its presence in the UK podcast market, but also to ensure that its entry supports, rather than disrupts, this developing ecosystem. We remain concerned about the implications of a major BBC owned commercial entity expanding further in the commercial podcast market, particularly in advertising, and the effect this may have on smaller, independent businesses. We encourage BBC Studios to join the many organisations who have long worked together to shape the commercial podcast and audio industry into the vibrant, collaborative space it is today.”

This article was updated on April 1st.

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