The Pet Shop Boys singer claimed that the corporation is failing new talent who no longer have a high profile platform to perform.
"I don't see why Top Of The Pops isn't on," Tennant told Radio 5 Live. "I think it's a shame. I think it was defeatist to get rid of it.
"I think it must be really strange to be a new artist. Like if JLS are number one on Sunday, they won't have that great moment of being crowned that week's Kings Of Pop."
Tennant claimed that a former BBC employee said the show was dropped because it had an old-fashioned format.
"He explained to me at great length that the public aren't interested in music unless it's heavily editorialised - by which he means X Factor," he explained.
"If you look back over the presentation of Top Of The Pops in the '90s, cynicism crept into the way it was presented.
"In the past, everything - the rubbish and the good stuff - was presented with enthusiasm. And I think its up to the public to make the taste decisions - not the DJs presenting."
Tennant recently described the calibre of music created by reality shows including The X Factor as "turgid".
> Click here to read our review of Pet Shop Boys' recent album Yes