Gary Lineker’s company warns over ‘disastrous’ BBC podcast adverts plan

Gary Lineker
Gary Lineker's podcast company Goalhanger has raised concerns for independent producers over BBC's advertising plan - Tom Dulat/Getty Images

The BBC’s plan to introduce adverts around its audio output is “disastrous” for the UK podcasting market, Gary Lineker’s production company has warned.

Goalhanger, which produces shows including The Rest is Politics and The Rest is History, is among 20 media companies to take aim at the public service broadcaster over its decision to start advertising around radio and podcasts.

In a letter to Lucy Frazer, the Culture Secretary, they wrote: “The BBC has vast funds to create content for its audiences and is not driven by commercial success, but instead by a mandate to act in the public interest, to inform, educate and entertain.

“The impact of it extracting audio advertising funds from the nascent UK podcasting market would be disastrous, especially for the numerous small independent podcast producers.”

The BBC has outlined plans to place ads around some of its programmes when they are streamed via third-party platforms such as Spotify and Apple.

The move, which could ultimately see ads introduced on shows such as The Archers, Desert Island Discs and In Our Time, marks efforts by the public service broadcaster to boost its commercial income and plug a £500m hole in its finances.

But the plans have drawn fierce criticism from commercial media groups amid concerns the BBC will cannibalise advertising revenues and crowd out smaller players, particularly in the burgeoning podcast market.

The companies wrote: “These changes are highly likely to have a significant adverse impact on fair and effective competition in the UK podcast market, while adding little to BBC budgets as a proportion of revenues guaranteed by the licence fee.”

Podcast advertising generated revenues of £76m in 2022, compared to the BBC’s total income of £5.7bn.

Goalhanger, which was co-founded by Gary Lineker in 2022, claims to be the UK’s biggest independent podcast group with 17.5m monthly downloads. The Match of the Day presenter also remains the BBC’s highest paid employee.

A government spokesman and BBC spokesman 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 rights holders. There are no plans to introduce adverts on the BBC’s own 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.”

It comes after Conservative MP Andy Carter warned about the harm to consumers as those who do not use BBC Sounds would “in effect be paying twice”.

Speaking in the House of Commons last week, he said: “The BBC is unfairly forcing licence fee payers to pick between ad-free listening on BBC Sounds or their preferred podcast platform.

“Listeners should be entitled to access BBC audio content, such as Desert Island Discs, via whatever means they choose.”

The signatories called for regulator Ofcom to carry out a review of the UK audio and podcast market before the BBC pushes through the changes.

The letter was also signed by commercial radio groups Global and Bauer, as well as Daily Mail owner DMG Media, Mirror and Express publisher Reach and The Telegraph.

The companies also accused the BBC over trying to overhaul its licence fee funding model by stealth, adding that the changes risk “setting a dangerous precedent”.

The Government is currently reviewing future funding models for the BBC amid concerns the licence fee is no longer fit for purpose in the streaming age.

The companies added: “We appreciate that the BBC and government will wish to review different options for funding BBC content in future, beyond the current licence fee period up to 2027.

“However, we do not believe that such significant changes should be introduced incrementally and by stealth.”

Matt Payton, chief executive of Radiocentre, which represents commercial radio stations, said: “Audiences do not expect advertising around BBC content, which they have already paid for through the licence fee. The BBC receives significant funding from the licence fee and should not be seeking advertising in addition to this.

“The unique funding and position of the BBC also means that any change of this nature would have a serious impact on the broader market, as well as an inevitable negative impact on the wider UK creative economy.

“Industry opposition is overwhelming and we urge the government to act quickly and engage with Ofcom which has the power to intervene.”

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