BBC Charter Review should rule out ad funding

The commercial radio industry has welcomed the launch of the BBC Charter Review process which will examine the future funding of the broadcaster, along with reforms to the regulatory framework. However, it has called for advertiser funding of BBC services to be ruled out.

The Department for Culture, Media & Sport has published (16 December) a Green Paper, Britain’s Story: The Next Chapter, which outlines the government’s vision for a sustainable future for the BBC.

In parallel with the Charter Review, the government is assessing funding options for the BBC. Radiocentre has continued to highlight that BBC radio could not be funded by advertising, publishing details of an economic study last year. This illustrated the devastating impact of moving to ad funding, both on the sustainability of the BBC’s own services and commercial radio revenues, which would decline by an estimated 36%.

Radiocentre will work closely with government during the Charter Review process and respond to the consultation to demonstrate that an ad funded BBC is not suitable for the UK radio and audio industry. The consultation is also an opportunity to propose ways in which external regulation of the BBC, currently overseen by Ofcom, could be improved, especially in areas where the BBC remains a dominant player domestically such as radio.

Matt Payton, Radiocentre CEO 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, so the BBC can continue to provide audiences with distinctive services that complement the output provided by commercial broadcasters.

While we understand the desire to consider all the options on funding, the fact remains that 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. This approach should be ruled out at the earliest possible opportunity.”