BBC must explain flashy US takeovers after being accused by ITV of chasing ratings

The BBC has been told it needs to be more transparent about its content acquisition strategy after being accused by ITV of buying high-profile US shows to seek ratings.

Ofcom, Britain’s media regulator, said the BBC must explain in its annual plan how buying content, as opposed to commissioning British originals, supports “diversity” and appeals to different audiences.

The BBC is funded by the British public with £3.8 billion ($4.7 billion), meaning it has a duty to differentiate itself from commercial rivals such as ITV and appeal to all audiences.

Ofcom made the intervention amid plans to update the BBC’s operating license for a digital age from next month. A guiding principle of the changes is transparency, with Ofcom claiming the BBC did not always provide sufficient “detail and clarity” about updates to its results and services.

In a submission to Ofcom’s review, ITV said the BBC had “drastically increased its spend on acquired content” over the past six years, including deals for shows such as Warner Bros. Discovery titles Superman and Lois and movies like Marvel’s Collect Avengers.

“The first problem with the BBC acquiring mainstream content from third parties is that it is uncomfortable with its mission to be distinctive and take creative risks,” ITV said.

“The second problem … is that the BBC competes in the market with other broadcasters such as ITV, which pushes up the price at which content is bought.”

ITV suggested the BBC should focus on specific acquisitions, citing previous deals for Scandinavian noirs The murder And safemeant to pave the way for other successful foreign language dramas.

Ofcom said it did not agree that “the BBC should be required to ensure that all its acquisitions are distinctive”. In other words, the regulator said the BBC could acquire US content as long as it helped the broadcaster cater to different audiences.

However, Ofcom added: “We agree with stakeholders that the BBC needs to be more transparent about its overall approach to takeovers.”

Kevin Bakhurst, Group Director for Broadcasting and Online Content at Ofcom, said: “We are particularly disappointed by the BBC’s lack of detail and clarity about proposed changes to its services, which is causing a great deal of uncertainty among the public and the industry .

“Our tough new reporting rules will ensure the BBC is subject to a higher level of public accountability by having to clearly explain its plans and assess whether they are working before going ahead.

Other changes made by Ofcom include reducing BBC4’s original production quota to 65% as part of the company’s plan to cut the channel’s costs. Ofcom will also replace the BBC’s daily and weekly news and current affairs quotas with an annual quota.

A BBC spokesman said: “BBC regulations need to evolve for the digital age so we can offer the public unbiased news and distinctively British content in a rapidly changing global market, so we welcome these changes. We are committed to transparency and will outline in our upcoming annual plan how we intend to reach the public in the coming year.