The BBC should not pay "over the odds" for the rights to overseas hits such as Suits and Schitt's Creek, an influential group of MPs has said. It is one of several issues raised in a wide-ranging report about the BBC's funding and future, published by the House of Commons' cross-party culture and media committee. Although the BBC produces a lot of its own programmes, the corporation buys some international shows for its TV channels and iPlayer streaming platform.
The MPs' report said the BBC could "spend more wisely when competing for programming". Overall, the BBC brings "immeasurable benefits" to society but needs reform of the TV licence fee to avoid a fate of "managed decline", they said. Committee chair Dame Caroline Dinenage said the report , externalcomes at "a pivotal moment for the BBC", which is grappling with changing media habits, declining income and negotiations with the government over how it is paid for.
Dame Caroline said the government "must ensure the BBC has a universal and sustainable source of funding". But, she added, the BBC "can play its part by sweating its assets and boxing clever for the licence payer by ending illogical practices such as outbidding commercial rivals for overseas hits such as Suits, Schitt's Creek and Scooby Doo". The rights to air all three programmes were bought by the BBC after contracts with other networks or streaming services expired.
"At a time of constrained resources, the BBC should not be paying over the odds for overseas content, particularly when it's a bidding war against commercial UK broadcasters," the committee said. The MPs added that they "did not believe that this provides value for money for the licence fee payer". The BBC said it spends less than 5% of its content budget on acquiring shows, less than other broadcasters, and they are a cost-effective way of delivering high-quality content to audiences who go on to discover homegrown programming.
The committee's report has been published as the government considers its options for the next BBC Royal Charter, which will set out how the broadcaster will be governed, regulated and funded from 2028 onwards. Dame Caroline said: "For all its faults, the BBC drives our creative economy, supports our democracy through media sovereignty, and delivers world-class entertainment and moments that bring us together. "Like a much-loved family member, we may criticise and grumble about the BBC but we would miss it enormously if it were no longer here for us." The committee said there were "considerable challenges" for the BBC and warned that the current TV licence fee is "outdated and no longer fit for purpose".
Currently, about 94% of individuals use the BBC each month but only 80% of households pay for a TV licence, the MPs noted. "The licence fee should be reformed so it is no longer linked to the consumption of live TV or to a particular device, such as a television set," the committee said. "This should be an easier sell to licence fee payers if expanding the base is paired with a drop in the individual cost." The BBC's director-general Matt Brittin has previously described the current licence fee model as "a busted flush" and "yesterday's model", and has said the price could be cut if more people pay under an overhauled system.
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