ITV has warned that 'niche' British TV shows like Mr Bates vs The Post Office are at risk of disappearing for good as budgets come under pressure from a drop in production.
The broadcaster has told MPs that rising costs and falling budgets have made it much harder for the channel to continue producing British-focused TV dramas.
The network used the example of Mr Bates vs The Post Office, which became a huge hit upon its release in January.
A dramatization of the Horizon IT scandal, the show tells the story of hundreds of post office workers who were wrongly accused of theft, fraud and false accounting due to a faulty computer system.
But even though the show achieved high ratings and twelve foreign broadcasters bought the rights to broadcast the show, it was not enough for them to break even.
Mr Bates vs The Post Office became a huge hit when it was released in January this year
John Hollingworth as James Hartley and Toby Jones as Alan Bates in 'Mr Bates vs the Post Office'
In its evidence to the Culture, Media and Sport Committee, ITV revealed that 'margins for highly distinctive British content are shrinking'.
It says international customers are becoming less interested in British content and instead want content that 'travels well globally'.
According to The Telegraph, they added: 'We commissioned Mr Bates knowing it would be a challenge to make a profit, but we felt the responsibility to tell the postmasters' story was important.
'Unfortunately, rising costs, lower assignment budgets and international markets/clients experiencing the same economic/sector-specific challenges as UK broadcasters are making it even more difficult for ITV to take risks like Mr Bates.'
Will Mellor as Lee and Amy Nuttall as Lisa in 'Mr Bates vs the Post Office'
The problem has been exacerbated by strikes in Hollywood that brought production to a standstill last year, with warnings that strikes would delay revenues by £80m from 2024 to 2025.
ITV said secondary sales, where British producers sell their shows to international customers, are crucial when it comes to financing.
While dramas such as Happy Valley and Downton Abbey translate well internationally, the broadcaster generates overseas revenue from game shows and reality TV dramas such as Love Island and The Chase.
A still from the award-winning ITV show Happy Valley starring Sarah Lancashire (right) as Catherine
The award-winning British TV drama Downton Abbey (pictured), which is extremely popular with viewers around the world
However, if demand abroad declines, it could mean that the network can no longer afford to make UK-targeted programs and will have to turn its interest to programs that have wider appeal.
An ITV spokesperson said: 'It's no secret that the costs and risks of making very British-specific dramas that may have limited international appeal are becoming increasingly challenging as costs rise and it becomes essential to secure funding for dramas across many different bringing partners together to get projects off the ground. the ground.
'ITV has an excellent track record of making these types of British dramas and we will continue to do so, but it is becoming increasingly difficult to make the economics work in a way that is less true for dramas with a clear global appeal.'