A parliamentary committee has warned the BBC it must stop outbidding commercial rivals for secondary rights to major US television hits such as Suits and Schitt’s Creek.
The House of Commons Culture, Media and Sport (CMS) Committee published its report on 1 October 2026, cautioning the broadcaster that its current acquisition strategy is “illogical” in the face of a mounting funding crisis. MPs argued that the BBC should not be using public money to compete for shows that are already widely available on other platforms or have already been aired by commercial competitors.
The report highlighted several specific titles, including the legal drama Suits, the comedy Schitt’s Creek, and the animated series Scooby Doo, as examples of spending that does not align with the BBC’s core public service remit. According to recent data, the BBC spends approximately 4.8% of its annual content budget—around £87 million—on overseas acquisitions.
‘Managed Decline’ Warning
The committee, chaired by Dame Caroline Dinenage, expressed concern that the broadcaster faces a period of “managed decline” unless it radically overhauls its business strategy and funding model. The report comes as the BBC prepares for its Royal Charter renewal, due at the beginning of 2028.
While approximately 94% of UK households use BBC services on a monthly basis, only 80% currently contribute via the licence fee. The annual TV licence fee rose to £180 in early 2026, but the committee noted that the current model is becoming increasingly difficult to sustain in a digital-first landscape.
In his first major scrutiny session since being appointed as BBC Director-General in March 2026, Matt Brittin has had to defend the broadcaster’s acquisition choices. The BBC has previously argued that these shows account for a small fraction of its total budget and provide a cost-effective way to attract younger audiences to the iPlayer platform.
However, the CMS Committee’s report suggests that the BBC should prioritise original UK-produced content rather than competing for “secondary rights” to American programmes that are already accessible via streaming giants or commercial broadcasters.
Proposed Funding Reform
To address the funding gap, MPs have recommended a “digital decoupling” of the licence fee. This would involve moving away from a fee tied strictly to live television broadcasts or specific hardware, such as a TV set, to reflect how audiences now consume content across multiple devices.
The committee suggested that broadening the funding base to include a wider range of digital users could eventually lead to a lower individual cost for households. However, it warned that any transition must be handled carefully to avoid penalising those who do not use digital services.
No immediate changes to the licence fee or the BBC’s current library have been implemented following the report. The findings serve as formal recommendations for the government to consider as it develops the next Royal Charter. For now, acquired shows like Suits remain available on the iPlayer platform.