BBC faces ‘more commercialisation’ as row over plans to run adverts on its podcasts continues – just weeks after latest licence fee hike

A production chief has warned that there is going to be ‘more commercialisation’ at the BBC amid a row over the broadcaster’s plans to run adverts on its podcasts.

The commercial arm of the corporation is looking to generate sales in the UK by introducing ads to their podcasts on third-party websites such as Apple and Spotify

And earlier this month a coalition of more than 20 media companies fiercely criticised the corporation’s proposals to monetise its podcasts – saying the move risks having a ‘significant adverse impact on fair and effective competition’.

Now the Head of Content for Salford-based creative audio company Audio Always has warned that it could be rolled out ‘over the next couple of years’.

But Dave Masterman chided 5Live’s Elis James and John Robins for eagerly requesting Staedtler highlighter pens and ‘elite running trainers’ – saying that there is ‘still a reputation to uphold’ despite the new plans.

Speaking on the Elis James and John Robins show, he said: ‘There is more commercialisation popping into the BBC over the next couple of years.’

Dave Masterman chided 5Live's Elis James and John Robins (pictured together) for eagerly requesting Staedtler highlighter pens and 'elite running trainers' - saying that there is 'still a reputation to uphold' despite the new plans

Dave Masterman (left) chided 5Live’s Elis James and John Robins (pictured together right) for eagerly requesting Staedtler highlighter pens and ‘elite running trainers’ – saying that there is ‘still a reputation to uphold’ despite the new plans

The BBC's plan is to have ads phased in, starting in late 2024 or early 2025, for its small factual, drama and comedy shows

The BBC’s plan is to have ads phased in, starting in late 2024 or early 2025, for its small factual, drama and comedy shows

Responding, Taskmaster star Robins said: ‘Tell me more about the commercial opportunities and partnerships the BBC is considering for the future, please Dave.’

The producer continued: ‘Well, there could be a world where podcasts that are distributed on the likes of, lets say, Spotify have adverts in them.’

And – reacting to a request for Mr Masterman to let them choose who they are sponsored by – he continued: ‘That doesn’t change, there is still a reputation to uphold – you can’t be on the blag like we might have been on previous commercial radio stations.’

The BBC’s plan is to have ads phased in, starting in late 2024 or early 2025, for its small factual, drama and comedy shows.

It is understood that hits such as The Archers, Baron Melvyn Bragg’s academic discussion programme In Our Time and interview series Desert Island Discs will follow suit if the first phase is deemed a success.

However, news and current affairs programming will be excluded. 

Earlier this year, Elis James and John Robins’ award-winning show started a new format, airing on BBC Sounds first, with one show being broadcast on 5 Live every Friday. 

The comedians have been presenting together since 2014, where they hosted a show on Radio X, before moving to 5 Live in 2019.

Earlier this year, Elis James and John Robins' award-winning show started a new format, airing on BBC Sounds first, with one show being broadcast on 5 Live every Friday

Earlier this year, Elis James and John Robins’ award-winning show started a new format, airing on BBC Sounds first, with one show being broadcast on 5 Live every Friday

Earlier this month, they won ‘radio moment of the year’ at the Aria Awards after Robins revealed his struggles with alcohol addiction on their sister podcast How Do You Cope?

A BBC spokeswoman said: ‘The BBC is exploring the opportunity to introduce some adverts on selected non-News podcasts on commercial platforms with the aim of delivering increased value to licence fee payers, our suppliers and our rightsholders.

‘There are no plans to introduce adverts on the BBC’s own audio platforms. The proposals are subject to an ongoing regulatory assessment and nothing has been confirmed. We will continue to engage with the industry as we shape our plans.’ 

Critics have raised concerns about the plans for the corporation to top its income from the licence fee by ‘distorting competition’.

News Media Association chief executive Owen Meredith said: ‘The news that the BBC is apparently set to muscle into the UK advertising marketplace by competing with commercial players for advertising around audio output is very alarming.

‘Such an intervention will profoundly distort competition, wreaking havoc on commercial players right across the media and advertising sector.

‘The BBC must not be allowed to use the might of its licence fee-powered services in the advertising marketplace, otherwise the consequences for our media could be catastrophic.

‘This would set an extremely dangerous precedent and these plans must be stopped immediately.’

Critics have raised concerns about the plans for the corporation to top its income from the licence fee by 'distorting competition'

Critics have raised concerns about the plans for the corporation to top its income from the licence fee by ‘distorting competition’

Mans Ulvestam, who co-founded podcast platform Acast, claims that it will make it more difficult for other providers of audio content.

The businessman, who has gone on to co-found the content monetisation company Sesamy, added: ‘So, the impact will be that less ads will be sold on commercial podcasts, since more people sharing will mean smaller percentages of what is available of ad revenue.

‘This means that many UK podcasters’ ad revenue is very likely to go down, and media will be more likely to turn to other sources of revenue – for example, premium, that the end users pay for it.’

Matt Payton, chief executive of the commercial radio body Radiocentre, told The Times: ‘The BBC’s services are funded to the tune of £3.8 billion a year.

‘It is surprising that the BBC now considers it necessary to sell advertising for its podcasts in the UK on top of that, potentially damaging commercial competitors and further distorting the market in the process.’

 Meanwhile, a senior podcasting figure who wished to remain anonymous, said they were sceptical whether the move would help the BBC grow the market overall, saying it will probably send smaller independent companies ‘bust’.

It comes after newspaper bosses have slammed the corporation as the ‘neighbour from hell’ over its plans to expand local news coverage.

The BBC is ‘strengthening’ its local websites in 43 areas using money redistributed from local radio, where 45 presenter roles are being axed.

Editors at major regional news publishers said the ‘state-funded juggernaut’ was ‘on course to suffocate independent journalism’ across the UK.

In a co-signed letter, published by an array of local titles, they told director-general Tim Davie he faces a ‘shameful legacy’ if he does not change his approach.

It said: ‘If the BBC was a family and lived in the house next door it would be the neighbour from hell.

‘Unlike Google, Meta and co, the BBC’s funding is guaranteed by the licence fee, meaning the British public is underwriting the biggest threat local journalism has ever faced.’

The BBC said ‘there is no evidence’ it is ‘crowding out other digital publishers’.

BBC Studios already sells audiobooks and puts adverts on the corporation’s podcasts outside the UK.

In 2022/23, it recorded a profit of £240 million, a rise of 6 per cent compared to the previous financial year.

BBC Studios said in July 2023 that 75 per cent of the global content studio’s revenues are from streaming platforms such as Amazon’s Prime Video, Apple TV+ and Netflix.

The commercial subsidiary credited crime series Happy Valley and documentary show Prehistoric Planet are among the recent successes.

Audio Always has been contacted for comment. 

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