MPs Urge BBC to Stop Overspending on Overseas Hits Like Suits and Schitt's Creek

A cross-party group of MPs has called on the BBC to stop paying above-market prices for the rights to foreign television programmes, singling out recent acquisitions such as Suits, Schitt's Creek, and Scooby Doo as examples of questionable spending. The recommendation appears in a wide-ranging report on the corporation's funding and long-term future, produced by the House of Commons culture, media and sport committee.

The committee, which draws members from across the political spectrum, argued that the broadcaster should exercise greater financial discipline when competing with commercial rivals for imported content. While the BBC commissions and produces a substantial share of its own programming, it also purchases international series for its linear television channels and its iPlayer streaming service.

The report stated that the corporation could "spend more wisely when competing for programming," suggesting that its acquisition strategy does not always represent the best use of public money. The MPs were particularly critical of instances where the BBC entered bidding wars against UK commercial broadcasters for overseas titles, describing such behaviour as illogical given the constrained financial environment in which the corporation operates.

Committee chair Dame Caroline Dinenage said the report arrives at what she characterised as a pivotal moment for the BBC, which is simultaneously navigating profound shifts in audience behaviour, shrinking revenue, and ongoing negotiations with the government over the licence fee. She stressed that the government must guarantee the BBC a universal and sustainable funding source going forward.

At the same time, Dame Caroline argued that the corporation has a responsibility to improve its own financial practices, including by "sweating its assets" and spending more strategically on behalf of licence fee payers. She specifically highlighted the practice of outbidding commercial competitors for programmes such as Suits, Schitt's Creek, and Scooby Doo as an area requiring reform.

All three titles were picked up by the BBC after their previous agreements with other networks or streaming platforms came to an end. Suits, a legal drama that originally aired on the USA Network, found a vast new audience in recent years after becoming available on streaming platforms, partly boosted by the profile of former cast member Meghan, the Duchess of Sussex. Schitt's Creek, a Canadian sitcom, was acquired by the BBC after it departed Netflix. Scooby Doo, the long-running animated franchise, likewise became available once prior contracts lapsed.

In reference to the source article, the committee said it "did not believe that this provides value for money for the licence fee payer," particularly given the pressure on the BBC's resources. It recommended that the broadcaster avoid paying over the odds for overseas content and rethink its approach to competing for rights.

The BBC pushed back on the criticism, noting that it devotes less than five per cent of its total content budget to acquiring shows, a smaller proportion than that spent by other broadcasters. A spokesperson argued that these purchases represent a cost-effective method of delivering high-quality programming to audiences, who often then go on to discover homegrown BBC content.

The report has been published as the government weighs its options for the next Royal Charter, the framework that will determine how the BBC is governed, regulated, and funded from 2028 onward. The charter review represents a critical juncture for the corporation, with debates over the licence fee model expected to intensify in the coming months.

According to the committee, the BBC faces considerable challenges, and the existing television licence fee is outdated and no longer fit for purpose. The MPs pointed out that while roughly 94 per cent of individuals in the UK use the BBC in some form each month, only about 80 per cent of households actually pay for a TV licence, leaving a significant funding gap.

The committee recommended that the licence fee be reformed so that it is no longer tied to the consumption of live television or to a specific device such as a television set. The MPs suggested that broadening the funding base, if paired with a reduction in the cost for individual households, could make the change more palatable to the public.

BBC director-general Matt Brittin has previously described the current licence fee model in stark terms, calling it a "busted flush" and "yesterday's model." He has indicated that the price could be lowered if more people contributed under an overhauled system, a position that aligns with the committee's suggestion that expanding the payer base could offset a lower individual fee.

Beyond the licence fee, the report offered a series of additional recommendations. The committee proposed that the BBC explore the possibility of introducing an international television licence to boost revenue and expand its global audience. It also urged the corporation to work more closely with independent production companies, which own the rights to many BBC programmes, to ensure that more content remains available on iPlayer.

The MPs further suggested that the BBC develop its existing premises with facilities capable of harnessing the potential of new media and supporting the creator economy. They also called on the government to legislate so that smart television remote controls include a dedicated BBC button, and to press YouTube to give a certain level of prominence to content made by the BBC and other British public service broadcasters.

In a related recommendation, the committee advocated for restoring full government funding to the BBC World Service, which it described as the UK's number one soft power asset. It also expressed support for opening up BBC iPlayer to programmes from other public service broadcasters, such as Channel 4. Earlier in the week, Channel 4 chief executive Priya Dogra said she was open to her network's content being hosted on iPlayer, signalling potential cross-industry cooperation.

The report additionally called for an end to political appointments to the BBC board as a means of improving governance and maintaining public trust. It recommended granting the BBC new public purposes related to innovation and technology, as well as combating misinformation and disinformation, reflecting the evolving media landscape in which the corporation operates.

The BBC responded to the report with a welcoming tone, describing it as containing some important and interesting recommendations about its future. A spokesperson reiterated the corporation's long-standing position that the current funding model is outdated and requires reform, while defending its acquisition spending as modest compared with its overall content investment and effective in serving audiences.