MPs Urge BBC to Stop Overpaying for Foreign Hits Like Suits and Schitt's Creek
A cross-party group of MPs has called on the BBC to stop paying above the market rate for overseas television programmes, singling out popular acquisitions such as Suits and Schitt
A cross-party group of MPs has called on the BBC to stop paying above the market rate for overseas television programmes, singling out popular acquisitions such as Suits and Schitt's Creek as examples of spending that may not represent good value for licence fee payers.
The recommendation appears in a wide-ranging report on the corporation's funding and long-term future, published by the House of Commons culture, media and sport committee. While the BBC produces the majority of its own output, it also purchases international titles to fill its broadcast channels and the iPlayer streaming service.
The committee argued that the BBC has room to be more careful when bidding for programming, warning that it could "spend more wisely when competing for programming." It described certain acquisitions as illogical, particularly when the corporation ends up in a bidding war with commercial UK broadcasters for content that originated elsewhere.
Suits, the US legal drama that gained a second life on streaming platforms and features the former Meghan Markle among its cast, was highlighted alongside the Canadian comedy Schitt's Creek and the animated series Scooby Doo. In each case, the BBC picked up the rights after agreements with other networks or streaming services had lapsed.
The MPs said they did not accept that outbidding commercial rivals for foreign shows delivers value for money to households that pay the TV licence. Their report frames the issue as part of a broader concern about how the BBC allocates its finite resources at a time when its income is under pressure.
The BBC pushed back on the criticism, noting that it devotes less than 5% of its content budget to acquiring programmes, a smaller share than other broadcasters. The corporation argued that such purchases are a cost-effective way of bringing high-quality content to audiences, who may then go on to discover homegrown programming they would not otherwise have found.
Committee chair Dame Caroline Dinenage said the report arrives at what she called a pivotal moment for the BBC, which is simultaneously navigating shifting viewing habits, falling revenue and negotiations with the government over its funding arrangements. She stressed that ministers must guarantee the corporation a universal and sustainable source of income.
At the same time, she said the BBC has its own part to play by making better use of what it already owns and by being smarter with licence fee money, including ending practices she described as illogical, such as outbidding commercial competitors for overseas hits.
The report lands as the government weighs its options for the next BBC Royal Charter, the framework that will determine how the broadcaster is governed, regulated and financed from 2028 onward. That timing gives the committee's recommendations added weight, as lawmakers seek to shape the debate before decisions are locked in.
Beyond programming spending, the committee delivered a blunt verdict on the current licence fee, calling it outdated and no longer fit for purpose. It pointed to a gap between the BBC's reach and its funding base, noting that around 94% of individuals use the BBC each month while only about 80% of households actually pay for a licence.
To close that gap, the MPs recommended decoupling the fee from the consumption of live television or from any particular device such as a television set. They suggested that expanding the payer base would be easier to sell to the public if it were paired with a reduction in the cost borne by each individual household.
The BBC's director-general, Matt Brittin, has previously characterised the existing model as a busted flush and a relic of yesterday, and has indicated that the price could come down if more people contributed under a redesigned system.
The committee also put forward a series of ideas aimed at strengthening the BBC's finances and global reach. Among them was exploring an international TV licence to grow revenue and overseas audiences, and working more closely with independent production companies that hold the rights to many BBC programmes so that more titles remain available on iPlayer.
On infrastructure, the MPs encouraged the corporation to develop its premises with facilities capable of harnessing new media and supporting the creator economy. They also backed opening up iPlayer to content from other public service broadcasters, such as Channel 4, a proposal that gained traction this week when Channel 4 chief executive Priya Dogra said she was open to her network's shows being hosted on the platform.
The report directed several suggestions at the government as well. It urged ministers to legislate so that smart TV remote controls include a dedicated BBC button, to press YouTube to give prominence to content made by the BBC and other British public service broadcasters, and to restore full funding for the BBC World Service, which the committee described as the UK's number one soft power asset.
On governance, the MPs called for an end to political appointments to the BBC board, arguing the change would bolster public trust. They also recommended assigning the corporation new public purposes focused on innovation and technology and on countering misinformation and disinformation.
Dame Caroline struck a conciliatory tone about the institution's overall contribution, saying that despite its faults the BBC drives the UK's creative economy, supports democracy through media sovereignty and delivers entertainment that brings people together. She compared it to a much-loved family member whom people may grumble about but would miss enormously if it disappeared.
The BBC responded by welcoming the report, saying it contained some important and interesting recommendations about the corporation's future. A spokesperson reiterated that the broadcaster has consistently argued the current funding model is outdated and requires reform.
Comments (0)