Commercial radio urges BBC ad funding ruled out

Commercial radio groups say the BBC Charter Review must rule out advertising as a future funding option for BBC radio services.

The industry response follows the launch of the BBC Charter Review, which will examine the broadcaster’s future funding and regulatory framework as part of the process to renew its Royal Charter.

The Department for Culture, Media and Sport has published a Green Paper titled Britain’s Story: The Next Chapter, setting out the government’s thinking on how the BBC should be funded and regulated in the years ahead.

Radiocentre has welcomed the review but reiterated its position that BBC radio should not be funded by advertising. The organisation has previously published an economic study showing that introducing advertising on BBC radio would have a damaging effect on both the BBC and the wider market, with commercial radio revenues estimated to fall by 36 per cent under such a model.

The industry body says advertiser funding would undermine the sustainability of BBC services while significantly weakening commercial broadcasters, reducing overall investment in UK radio and audio. It argues this would ultimately limit listener choice rather than expand it.

Radiocentre plans to work closely with government throughout the Charter Review process and will submit a formal response to the consultation. As well as funding, it intends to highlight areas where external regulation of the BBC could be strengthened, particularly in radio, where the BBC remains a dominant domestic player and competition with commercial services is most acute.

Matt Payton, Chief Executive of Radiocentre, said: “The BBC holds a unique and privileged position in the UK media sector. We welcome the opportunity to work with government to help shape the right framework for the future.”

He added: “Ad funding of BBC services is a fundamentally flawed approach. It could devastate commercial media businesses, undermine the viability of BBC services and leave audiences with a narrower choice of UK content.”

The consultation is expected to attract significant engagement from across the radio and audio industry, with commercial broadcasters keen to ensure that future funding decisions protect a balanced and sustainable audio landscape across the UK.