BBC scraps podcast adverts after Gary Lineker complains it would harm his business
The corporation had outlined proposals to place advertisements around some of its programming in the UK when streamed on platforms such as Apple and Spotify.
But the plans have been shelved after rivals including Goalhanger, the podcast company run by Mr Lineker, warned of a 'disastrous' impact on the market.
A BBC spokesman said: '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.
'We will continue to support the audio sector and the wider market, investing in the best ideas and developing production capabilities across the UK.'
The BBC had been considering introducing advertising to programmes such as The Archers, Desert Island Discs and In Our Time in an effort to boost revenues.
Tim Davie, the BBC's director general, is trying to expand income from the BBC's commercial division as he grapples with a squeeze on licence fee funding and a £500m black hole in the broadcaster's finances.
However, insiders said the BBC was dropping the advertisement plans as they recognised the strength of feeling among rivals. The decision is expected to be confirmed in the BBC annual plan due to be published early next week.
Mr Lineker's Goalhanger, which produces shows including The Rest is Politics and The Rest is History, was one of 20 media companies to hit out at the proposals, arguing that the BBC would cannibalise advertising revenues and crowd out smaller players.
Goalhanger, which was founded by the former England footballer in 2022, claims to be the UK's largest independent podcast group with its shows downloaded over 400m times worldwide last year. The Match of the Day presenter also remains the BBC's highest-paid star.
In a letter last summer to Lucy Frazer, the culture secretary at the time, 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.'
The News Media Association, which represents local and national publishers, branded the plans 'catastrophic'.
Critics warned against allowing the BBC, which is funded by the licence fee, to muscle into the nascent podcasting market. Podcast advertising generated revenues of £76m in 2022, compared to the BBC's total income of £5.7bn.
Andy Carter, the former Conservative MP, also warned about the impact on consumers, saying those who did not use BBC Sounds would 'in effect be paying twice'.
It comes after the BBC announced a shake-up to its Sounds streaming platform that will see expats cut off from scores of radio stations and podcasts.
The BBC said it was developing ways of increasing commercial revenues internationally while growing Sounds in the UK through initiatives such as releasing podcasts first on its own platform before releasing them to third parties such as Apple and Spotify.
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