The BBC confirms it has abandoned plans to introduce advertisements on its radio programs and podcasts available on third-party platforms following opposition from industry competitors, including soccer icon Gary Lineker’s podcast company.

“We have listened to feedback and having considered the options carefully, we have decided to rule out placing adverts around BBC licence-fee funded programmes on third-party podcast platforms in the UK,” a BBC spokesperson stated.

The corporation will “continue to support the audio sector and the wider market, investing in the best ideas and developing production capabilities across the UK,” according to the statement.

Financial Considerations Amid Budget Constraints

The abandoned advertising initiative was part of BBC Director General Tim Davie’s strategy to expand income from the corporation’s commercial division while managing a squeeze on licence fee funding and a reported £500 million deficit in the broadcaster’s finances.

The public broadcaster had considered introducing advertising to popular programs such as “The Archers,” “Desert Island Discs,” and “In Our Time” to boost revenues. The decision to drop these plans is expected to be confirmed in the BBC’s annual plan, due for publication in early April.

Industry Opposition Cites Market Concerns

Goalhanger was among 20 media companies that opposed the proposals, arguing that the BBC would cannibalize advertising revenues and crowd out smaller players in the podcast market.

In a letter to the culture secretary last summer, the media companies wrote: “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.”

Critics warned against allowing the licence fee-funded BBC to enter the developing podcasting market, which generated revenues of £76 million in 2022, compared to the BBC’s total income of £5.7 billion.

Lineker’s Growing Podcast Empire

As the Daily Mail reports, Lineker’s Goalhanger, founded in 2014 and expanded into podcasts in 2019, claims to be the UK’s largest independent podcast group, with downloads exceeding 400 million globally last year. The company produces popular shows, including “The Rest Is Politics” and “The Rest Is History.”

Financial reports reveal that Goalhanger’s earnings increased from £590,000 in 2023 to £2.03 million in 2024, with assets rising from £560,000 to £2.7 million. Lineker maintains significant control of the company, which he co-founded with former ITV controller Tony Pastor and former BBC executive Jack Davenport.

Strategic Shift to Focus on Podcasts

In November 2024, Goalhanger announced it was scrapping its TV production arm to concentrate on its podcast business. The spin-off company, Goalhanger Films Ltd, incorporated in 2014, is being voluntarily liquidated according to UK Companies House.

“We effectively mothballed films and set up a bespoke company concentrating on podcasts,” Pastor said in a statement. “The growth of podcasts was so explosive, and television is challenged, so we’ve now done some housekeeping.”

Pastor also noted the strategic advantage of the shift: “We’ve gone from a production company being entirely beholden to commissioners and the budgets of broadcasters to having a degree of self-control, whereby we are self-commissioning.”

BBC’s Alternative Revenue Strategy

Despite abandoning UK advertising plans, the BBC revealed it is developing ways to increase commercial revenues internationally while growing its Sounds platform domestically through initiatives such as releasing podcasts first on its own platform before distributing them to third parties.

Matt Payton, Chief Executive of Radiocentre, the industry body for commercial radio, welcomed the decision: “This is clearly the right decision for audiences as well as the many businesses investing in podcasts in the UK.”