BBC paying to air shows like Suits and Schitt's Creek is illogical, MPs say

BBC paying to air shows like Suits and Schitt's Creek is illogical, MPs say

A group of influential Members of Parliament has advised that the BBC should avoid paying excessive amounts for the rights to popular international shows like *Suits* and *Schitt’s Creek*. This recommendation is part of a comprehensive report from the House of Commons’ cross-party culture and media committee, which examines the funding and future direction of the BBC. While the BBC creates much of its own programming, it also acquires certain overseas series for broadcast on its TV channels and iPlayer streaming platform.

The committee emphasized that the BBC could manage its expenditures more efficiently when bidding for acquired content. They acknowledged the BBC’s significant societal value but highlighted the need to reform the TV licence fee to prevent what they termed a “managed decline.” Dame Caroline Dinenage, the committee chair, described the report’s timing as critical, given the challenges the BBC faces from evolving media consumption habits, decreasing revenue, and ongoing funding negotiations with the government. She stressed that the government must guarantee the BBC a sustainable and universal funding source. Simultaneously, the BBC should optimize its resources by ceasing unnecessary overspending on external programming, particularly when outbidding commercial rivals for shows such as *Suits*, *Schitt’s Creek*, and *Scooby Doo*.

The report pointed out that the BBC purchased the broadcasting rights for these shows only after previous deals with other broadcasters or streaming services had expired. The committee criticized the BBC for engaging in bidding wars with commercial UK broadcasters, cautioning that such practices do not represent good value for licence fee payers. In response, the BBC stated that less than 5% of its content budget is allocated to acquiring shows—significantly less than many competitors—and argued that these acquisitions provide a cost-effective means to attract viewers to domestic programming as well.

Addressing broader issues, the committee highlighted significant challenges ahead for the BBC and described the existing TV licence fee as outdated and ineffective. They pointed out that although about 94% of people access BBC content monthly, only 80% of households pay the licence fee. They proposed that the licence fee should be decoupled from watching live TV or owning a specific device like a television set, which could make reforms more acceptable if paired with lowering the individual cost. BBC director-general Matt Brittin has previously labeled the current funding model “a busted flush” and suggested that a revamped system involving more payers could allow for a price reduction.

Additional recommendations included exploring the introduction of an international TV licence to grow the BBC’s global reach and revenue, cooperating with independent production companies to keep more shows available on iPlayer, and upgrading the BBC’s facilities to better support new media and the creator economy. The committee also encouraged government support for measures such as legislating to include a BBC button on smart TV remotes, urging platforms like YouTube to prioritize British public service broadcaster content, and restoring full government funding for the BBC World Service, which was praised as “the UK’s number one soft power asset.”

The report advocated for expanding BBC iPlayer to feature programming from other public service broadcasters like Channel 4, whose chief executive has expressed willingness to share content on the platform. It also called for an end to political appointments on the BBC board to enhance governance and maintain public trust. Furthermore, the committee recommended assigning the BBC new public purposes focused on innovation, technology, and combating misinformation.

The BBC welcomed the report, recognizing its valuable input on future directions and affirming the necessity of updating its funding structure. A spokesperson emphasized the corporation’s ongoing argument that the current licence fee model is obsolete and supported maintaining universal funding with reforms. The statement applauded the report’s endorsement of the World Service’s importance and the call for government responsibility in its funding. They acknowledged the BBC’s unique trust, reach, and creativity amidst a rapidly changing media environment, while affirming commitment to evolve swiftly.

The Department for Digital, Culture, Media and Sport (DCMS) expressed full agreement with the committee’s conclusion that maintaining an ambitious and innovative BBC is in the national interest. The department confirmed it will carefully evaluate the recommendations along with public and stakeholder feedback to guide decisions on the next Royal Charter governing the BBC

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