The BBC’s plans to run adverts on its podcasts would have a “disastrous impact” on the UK’s media market, businesses have warned.

The broadcaster shared plans to run advertising on its podcasts and on-demand audio that are played on third-party platforms like Spotify in March.

A group of 20 media businesses – including Sky – have now signed an open letter addressed to Culture Secretary Lucy Frazer, saying the move could set “a dangerous precedent”.

In the letter, they say: “The BBC has vast funds to create content for its audiences and is not driven by commercial success, but instead by a mandate to act in the public interest, to inform, educate and entertain.

“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.”

Other signatories include ITV, Channel 4, News UK, DMG Media, Reach plc and Goalhanger Podcasts – which was co-founded by BBC presenter Gary Lineker and produces shows such as The Rest Is Politics and The Rest Is History.

In their annual plan released in March, BBC Studios said “adverts are the norm” on third-party platforms, and added the plans are intended to “generate more revenue to support the BBC, licence fee payers our suppliers and rights holders”.

Gavin & Stacey to return for ‘last ever episode’ on Christmas Day, James Corden announces

BBC newsreaders Martine Croxall, Annita McVeigh, Karin Giannone and Kasia Madera begin legal action against corporation

Family at centre of Huw Edwards allegations ‘still suffering’

They added: “We will ensure these plans meet our regulatory requirements and all content will remain ad-free on BBC Sounds.”

Read more on Sky News:
‘Serious questions’ over ultra-long mortgages
Three charged with ‘spying for Hong Kong’
Meghan: Nigeria is ‘my country’

Keep up with all the latest news from the UK and around the world by following Sky News

Last week, Conservative MP Andy Carter said in the House of Commons that those who do not use BBC Sounds would “in effect be paying twice” under the plans.

He said: “The BBC is unfairly forcing licence fee payers to pick between ad-free listening on BBC Sounds or their preferred podcast platform.

“Listeners should be entitled to access BBC audio content, such as Desert Island Discs, via whatever means they choose.”

Sky News has contacted the BBC for comment.

Related posts:

The pinging of the NHS app may be a bell tolling for economic recovery Ralph & Russo collapse draws scrutiny of pensions watchdog Unilever risks becoming a takeover target as it pursues GSK’s consumer healthcare arm Family-owned fragrances retailer Bodycare plots sale Davos distracted by war as some of the world’s biggest challenges take a backseat Hunt poised to approve £300m grant in bid to avert British Steel collapse Tesco sees ‘encouraging early signs’ that grocery inflation is starting to ease Workplace romances are an increasingly thorny issue for companies Coco di Mama owner to test bidders’ casual dining appetite Sainsbury’s claims food win but reveals tougher Christmas for wider sales House prices, electric vehicle chargers and store advertising US interest rates held again after three months of disappointing inflation data