BBC backtracks on having adverts in some UK podcasts

The BBC has "decided to rule out" placing adverts on some of its podcasts for UK listeners on sites such as Apple and Spotify.

Last year, the corporation revealed it planned to put ads in some of its podcasts on commercial platforms to "generate more revenue to support the BBC".

But some of Britain's biggest media companies objected - including ITV, Sky, commercial radio giants Bauer and Global, and Gary Lineker's production company Goalhanger - with a joint letter to the government warning that the move would be "disastrous" for the UK podcast market.

The BBC said: "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."

A spokesperson added: "We will continue to support the audio sector and the wider market, investing in the best ideas and developing production capabilities across the UK."

Under the plan, adverts would not have been placed in shows on the corporation's own audio platform, BBC Sounds.

The letter sent by the media companies to the government last May said: "Forcing users to migrate to BBC Sounds if they want to hear content ad-free also has the impact of putting BBC Sounds at a distinct advantage as a platform, having an unfair competitive advantage when it comes to competition between listening platforms."

It added: "These changes are highly likely to have a significant adverse impact on fair and effective competition in the UK podcast market."

Podcast advertising was worth £76m in 2022, it said, compared with the BBC's income of £5.7bn.

The BBC's plan for adverts on podcasts, listed in the 2024/2025 annual plan, had said it would "assess this proposal for compliance with our regulatory obligations".

The corporation currently gets most of its income from the licence fee, which costs £169.50 a year.

BBC Studios sells ads on BBC podcasts outside the UK.

When the plan to do the same in the UK was announced a year ago, the BBC said it would "generate more revenue to support the BBC, licence-fee payers our suppliers and rights holders".

Last year, director general Tim Davie said the broadcaster's annual savings target would rise to £700m a year by 2028.

Culture Secretary Lisa Nandy has started negotiations with the BBC about the corporation's funding after its current royal charter expires in 2027.

The charter, drawn up by the government, sets out the terms and purposes of the BBC's existence and normally lasts for about a decade.

In January, Nandy ruled out funding the BBC from taxes if the licence fee was to be abolished.

The Department for Culture, Media and Sport declined to comment on the BBC's podcast decision.