Radiocentre urges MPs to reject advertising on the BBC at the ‘earliest opportunity’

Radiocentre has urged MPs on the Culture, Media & Sport (CMS) Committee to reject proposals for advertising to be introduced around BBC content at the “earliest opportunity”.

The industry body for commercial radio has published its full response to the Government’s Green Paper consultation, highlighting strong opposition from the public and the negative economic impact of advertising on the BBC.

The CMS Committee is currently examining the BBC Charter Review process, launched by the Department for Culture, Media & Sport in December 2025. 

The Charter Review, which sets out how the broadcaster is governed, regulated, and funded, outlines the BBC’s plans for the next 10 years from 2028.

Radiocentre CEO Matt Payton said: “We welcome the CMS Committee’s focus on BBC Charter Review. However, continued uncertainty around the BBC’s future funding model is unhelpful, particularly given the increasingly challenging economic climate. 

“The Government should rule out advertising across all BBC platforms at the earliest opportunity ahead of the next stage of the Charter Review process.

“Our evidence to MPs highlights that advertising alongside the licence fee is deeply unpopular with the public, and risks undermining the BBC’s ability to deliver distinctive content.”

In its published submission to MPs, Radiocentre outlined three overarching recommendations: rule out advertising for BBC radio and audio; ensure the BBC delivers genuinely distinctive public service content; and strengthen the regulatory framework for BBC radio and audio. 

The economic argument against advertising on the BBC is supported by a study by the competition economist Compass Lexecon, commissioned by Radiocentre in 2022 to conduct economic modelling based on confidential industry data. 

The study found that an ad-funded BBC radio would face a funding shortfall of 63%, a 36% reduction in commercial radio revenues, and a total loss of £770m to the UK economy. 

Compass Lexecon has since updated the model to account for listening trends through 2026 and found that the BBC would expect to generate 12% less advertising revenue than the 2022 model predicted overall. 

Similarly, consumer research from More in Common, commissioned by Radiocentre in February, found that over a third of BBC radio listeners say they would listen less or stop listening altogether if advertising were introduced.

Radiocentre has also urged MPs to rule out hybrid approaches to advertising, including the commercialisation of archive audio on BBC Sounds or of BBC audio on third-party platforms.

It says this would “radically alter the audio market” due to its limited pool of advertising revenue. 

In addition, the More in Common research raises concerns about the distinctiveness of BBC radio, with just one in six members of the public (17%) saying it offers truly unique content.

Radiocentre states that distinctiveness is essential to limiting negative market impact and ensuring the BBC does not “crowd out” commercial services.

The BBC is the largest single player in UK radio, with a 43% market share, and, as a result, the Green Paper acknowledges that radio and audio may require a different regulatory approach to other channels. 

This was welcomed by Radiocentre, but it still urged the Government to introduce enhanced measures to protect the future viability of the sector in the next Charter.

The BBC is assessing funding options due to falling revenue from the license fee, as the number of households that are signed up fell from 25.5m in 2020 to around 23.8m.