MPs question BBC spending on overseas shows as Charter review approaches

The BBC should avoid paying over the odds for overseas shows including Suits and Schitt’s Creek, a House of Commons committee said in a report published on 1 October. The committee questioned whether competing with UK commercial broadcasters for those programmes gives licence-fee payers value for money. Its recommendations arrive as the government considers how the broadcaster should be funded and governed under its next Royal Charter, due to take effect in 2028.

The Digital, Culture, Media and Sport Committee acknowledged that buying programmes can help the BBC attract audiences, particularly younger viewers. Its objection was to the price it might pay when bidding against commercial rivals. Committee chair Dame Caroline Dinenage cited Suits, Schitt’s Creek and Scooby Doo as examples of overseas hits acquired after earlier rights agreements expired. The committee’s report is available on the UK Parliament website.

How the BBC defended its programme purchases

The BBC said acquired shows account for less than 5% of its content budget. It described the purchases as a cost-effective way to offer audiences programmes they want to watch and said those viewers can then discover homegrown BBC content. The corporation also said its spending share on acquisitions is lower than that of other broadcasters.

The committee’s criticism concerns value for money, rather than a published calculation showing that the named deals lost money. The available accounts do not give prices or contract terms for Suits, Schitt’s Creek or Scooby Doo, or measure whether those purchases brought additional viewers to other BBC programmes. The BBC and the committee therefore disagree about the spending’s value without a disclosed programme-by-programme comparison.

What MPs proposed for the TV licence fee

The committee recommended changing the licence fee so it would no longer depend on watching live television or using a particular device. It said a broader paying base could be paired with a lower charge for each payer, provided the BBC’s income remained sustainable. It also urged ministers to keep a household levy under consideration as a possible future model, while recognising the practical difficulty of introducing one soon.

Dinenage said the government needed to secure a universal and sustainable source of funding for the BBC. She also argued that the corporation should make better use of its assets and spending. The committee’s proposals are recommendations to ministers; they do not themselves alter who pays, how much they pay or what programmes the BBC buys.

Changes proposed for the World Service, iPlayer and BBC Board

The committee called for the government to resume full responsibility for funding the BBC World Service, which it described as a national-security and soft-power asset. It also supported allowing BBC iPlayer to carry programmes from other UK public-service broadcasters, including Channel 4. Channel 4 chief executive Priya Dogra had said earlier in the week that she was open to its content being hosted on iPlayer.

For BBC governance, MPs recommended removing political and geographical appointments to the BBC Board and considering an independent body to appoint its chair, subject to the Secretary of State’s approval. They also proposed a permanent Charter without an end date, with formal periodic reviews of funding and public purposes. That would change the structure of future Charter decisions if ministers accepted the recommendation.

The report further urged ministers to press YouTube for an agreement giving BBC and other UK public-service content greater prominence, leaving legislation as an option if talks fail. It recommended a smart-TV remote-control button offering a shortcut to public-service media. Both proposals concern how audiences find British public-service programmes as viewing moves across devices and platforms.

What happens before the next BBC Charter

The BBC welcomed the report’s support for reforming what it called an outdated funding model. It also welcomed the recommendation that the government fully fund the World Service, while saying the corporation recognised the need to evolve faster. The Department for Digital, Culture, Media and Sport said it would consider the committee’s recommendations alongside public and stakeholder views when making decisions for the next Charter.

No government decision on the committee’s proposed funding, governance or distribution changes has been announced in the reported responses. Nor is there evidence here that the BBC has changed its overseas programme purchasing because of the report. The immediate question for viewers and licence-fee payers is which of the committee’s proposals, if any, ministers will carry into the Charter that is due to begin in 2028.