BBC Studios Explores Advertising Opportunities on Commercial Podcast Platforms
The BBC is planning to introduce advertisements on some of its podcasts for UK listeners accessing platforms like Apple and Spotify.
BBC Studios stated that advertising has become commonplace on commercial platforms and implementing it on BBC podcasts would generate additional revenue to support various stakeholders, including the BBC, license-fee payers, suppliers, and rights holders. However, listeners on BBC Sounds will continue to enjoy uninterrupted content without ads.
The decision comes amidst a £90 million funding gap caused by a smaller-than-expected increase in the licence fee in December. As critics question the viability of a universal fee in the digital age, speculation regarding a potential change in the BBC’s funding model has arisen.
Initially, ads will be introduced on smaller drama, comedy, and factual podcasts from late 2024. If successful, they may also appear on more prominent podcasts like Desert Island Discs and The Archers. Notably, news and current affairs podcasts will remain ad-free, and the plans are subject to regulatory assessment.
However, the announcement has raised concerns among industry experts. Owen Meredith, chief executive of the News Media Association, expressed alarm, stating that the move could disrupt competition and adversely affect commercial players across the media and advertising sector. Måns Ulvestam, co-founder of podcasting company Acast, feared that BBC ads could diminish revenue for other podcasts in the UK.
BBC Studios is already selling ads on BBC podcasts outside the UK and also generates revenue from selling audiobooks. However, the majority of its revenue last year came from streaming services like Amazon’s Prime Video and Netflix. Despite this, BBC Sounds recorded 1.6 billion plays in the same period.
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