BBC must be ad-free and more distinctive

The BBC must remain free of advertising and seize the opportunity to provide audiences with more distinctive output in order to secure its future, according to analysis commissioned by Radiocentre, the industry body for commercial radio, as part of its response to the government’s consultation on BBC Charter Review.

New polling carried out by leading public opinion research agency More in Common highlights that the proposed introduction of advertising alongside the licence fee is deeply unpopular with the public, with 65% opposing. BBC radio listening would also be significantly impacted by carrying advertising, with 34% of its audience either listening less or stopping altogether, putting the viability of BBC services at risk.

In addition, the research found that listeners want the BBC to invest in distinctive output such as news, local radio, speech-programming. The top investment priority for BBC radio listeners is news and current affairs (66%), with the lowest levels of support for the launch of new music stations or streams (18%).

Separate new analysis of BBC funding, undertaken by economists Compass Lexecon, shows that ad-funded BBC radio would face a huge funding shortfall of 63% and have a negative knock-on impact on popular commercial stations as well as the wider UK economy.

The commercial radio sector is calling on the government to:

• Rule out advertising for BBC radio and audio at the earliest opportunity: Economic evidence demonstrates that an advertising-funded BBC radio would face a 63% shortfall in funding and cost the UK economy £770 million in lost GVA.
• Ensure the BBC delivers genuinely distinctive public service content: The next Charter must retain and strengthen the BBC’s obligations to deliver distinctive radio and audio output, including services on BBC Sounds.
• Strengthen the regulatory framework for BBC radio and audio: The government must recognise the BBC’s dominant position in the UK radio and audio market and ensure that the independent oversight of the BBC by Ofcom is improved, more transparent and effective.

Radiocentre CEO Matt Payton said:

“Charter Review is a golden opportunity to create a sustainable future for the BBC. But the evidence is clear. The BBC cannot be funded by advertising and requires a stronger framework to help drive distinctiveness.

We are urging Ministers to rule out BBC advertising at the earliest possible opportunity and focus on viable forms of public funding, or risk doing irreparable damage both to commercial services and the BBC itself.

In return, the BBC should be expected to deliver greater creative originality and innovation in order to complement, rather than duplicate what’s on offer from the wider commercial market.”