MPs Urge BBC to Stop Overpaying for Overseas Hits Like Suits and Schitt's Creek
The BBC is facing fresh criticism over its spending on international television programmes, with a powerful group of MPs warning that the corporation should not be paying above the
The BBC is facing fresh criticism over its spending on international television programmes, with a powerful group of MPs warning that the corporation should not be paying above the market rate to secure the rights to overseas hits. A report published by the House of Commons cross-party culture and media committee singled out shows such as Suits, Schitt's Creek and Scooby Doo as examples of content that the broadcaster has acquired at potentially excessive cost, arguing that such deals do not represent good value for money for licence fee payers.
The committee's findings form part of a broader inquiry into the BBC's funding and its long-term future, at a time when the corporation is navigating significant changes in how audiences consume media. The report acknowledged that the BBC delivers what it described as "immeasurable benefits" to society, but cautioned that without reform of the television licence fee, the broadcaster risks sliding into a state of "managed decline".
Dame Caroline Dinenage, who chairs the committee, said the report arrives at what she called "a pivotal moment for the BBC". She pointed to the corporation's struggle with shifting viewing habits, falling income, and ongoing negotiations with the government over how the BBC should be financed in the years ahead. According to Dame Caroline, the government has a responsibility to ensure the BBC has a funding model that is both universal and sustainable.
However, she also argued that the BBC itself must take steps to improve its financial stewardship. She called on the corporation to "sweat its assets" and act more shrewdly on behalf of licence fee payers, including by ending what she described as illogical practices such as outbidding commercial competitors for overseas programming. The programmes specifically named in the report were all acquired by the BBC after their previous contracts with other broadcasters or streaming platforms had come to an end.
Suits, the American legal drama that has enjoyed a resurgence in popularity in recent years, is among the titles the committee highlighted. The show, which features a cast including Gabriel Macht, Gina Torres, Patrick J. Adams, Sarah Rafferty and Meghan Markle, has attracted new audiences long after its original run concluded. Schitt's Creek, a Canadian comedy series, was snapped up by the BBC after leaving Netflix, while Scooby Doo content has also been acquired by the corporation.
The committee's report stated that at a time of constrained resources, the BBC should avoid paying over the odds for overseas content, especially when doing so involves entering bidding wars against commercial UK broadcasters. MPs on the committee made clear they did not believe such spending provides value for money for those who pay the licence fee.
In response, the BBC has defended its approach to acquiring international programming. The corporation said it devotes less than 5% of its content budget to buying shows, a lower proportion than other broadcasters, and argued that such acquisitions are a cost-effective way of delivering high-quality content to audiences. The BBC also maintained that viewers who come for acquired programming often go on to discover homegrown British shows.
The report has been published as the government considers its options for the next BBC Royal Charter, the framework that will determine how the broadcaster is governed, regulated and funded from 2028 onwards. The charter review represents a critical juncture for the corporation, which is seeking to secure a stable financial footing amid intense competition from global streaming platforms.
Beyond the question of overseas acquisitions, the committee raised serious concerns about the current television licence fee, describing it as outdated and no longer fit for purpose. MPs noted that although around 94% of individuals use the BBC each month, only 80% of households actually pay for a TV licence. They recommended that the licence fee be reformed so that it is no longer tied to the consumption of live television or to a particular device such as a television set.
The committee suggested that broadening the funding base while simultaneously reducing the individual cost could make such a change more palatable to licence fee payers. The BBC's director-general, Matt Brittin, has previously characterised the existing licence fee model as "a busted flush" and "yesterday's model", and has indicated that the price could be lowered if more people contributed under a redesigned system.
The MPs also put forward a series of recommendations aimed at strengthening the BBC's position. They suggested the corporation explore the possibility of introducing an international TV licence to boost revenue and expand its global audience. They also encouraged the BBC to work with independent production companies that own the rights to many of its programmes, to ensure more content remains available on iPlayer. Additionally, the committee recommended developing the BBC's current premises with facilities capable of harnessing the potential of new media and supporting the creator economy.
The report directed several recommendations at the government as well. MPs said ministers should legislate to ensure a BBC button appears on remote controls for smart televisions, making it easier for viewers to access the corporation's content. They also urged the government to press YouTube to give a certain level of prominence to content made by the BBC and other British public service broadcasters. Furthermore, the committee called for full funding to be restored for the BBC World Service, which it described as the UK's number one soft power asset.
The committee also expressed support for opening up BBC iPlayer to shows from other public service broadcasters, such as Channel 4. The suggestion follows comments earlier in the week from Channel 4 chief executive Priya Dogra, who said she was open to her network's content being hosted on the iPlayer platform. Such a move could reshape the way British public service broadcasting is delivered in the streaming era.
In a further recommendation, the report called for an end to political appointments to the BBC board, arguing that this would improve governance and help the corporation maintain public trust. The committee also recommended that the BBC be given new public purposes relating to innovation and technology, as well as combating misinformation and disinformation.
The BBC responded to the report by welcoming it, saying it contained some important and interesting recommendations regarding the corporation's future. A spokesperson for the BBC reiterated that the organisation has consistently argued the current funding model is outdated and in need of reform. The broadcaster's engagement with the committee's findings is likely to continue as the debate over its long-term future and funding arrangements intensifies in the run-up to the 2028 charter renewal.
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