Canal+ threatens to drop €1bn French film deal over pay-TV tax rise
Canal+ could walk away from its roughly €1 billion ($1.1 billion) pledge to French and European cinema if France doubles tax on pay-TV subscriptions, chairman Maxime Saada has warned, as reported by Variety. The warning centres on France's proposed finance bill, which would end the reduced 10% VAT rate on pay-TV — VAT is a sales tax added to the subscription price — and apply the standard 20% rate.
Saada told RTL in an interview reported on 5 October 2026 that the change would cost Canal+ about €200 million a year. That is money straight off its French business. It would hit subscriber revenue before a single film is financed.
He said applying the standard rate would void Canal+'s contract with French film organisations, with no renegotiation needed, as reported by Variety. Canal+ would then fall back to its minimum legal obligations. That could cut its annual cinema contribution to around €50 million, he said.
The government is seeking €43 billion in savings and extra revenue in 2027 as it tries to reduce growing debt. The same finance bill would cut funding for public broadcasters by €47 million to €3.82 billion.
Canal+ signed the five-year funding agreement on 27 July 2026, covering 2028 to 2032, as reported by Reuters. It followed an earlier €480 million commitment for French cinema from 2025 to 2027. That earlier pact let Canal+ keep a six-month exclusive window, meaning films reach its subscribers six months after their cinema release and before rival broadcasters and platforms, as reported by Screen Daily.
Canal+ set out its opposition in a company statement dated 1 October 2026 and titled "FRENCH VAT INCREASE ON TV SUBSCRIPTIONS: A DIRECT ATTACK ON CANAL+'S ACTIVITIES IN FRANCE", published by Canal+. The group describes itself in investor documents as the largest financier of French cinema. It had already withdrawn its pay-TV channels from DTT, France's free digital terrestrial television service, in December 2024, as announced by Canal+.
For audiences, this matters because Canal+ money helps films get made long before tickets go on sale. If that funding falls back to the legal minimum, fewer French and European productions would have secure backing to reach cinemas. The decision now sits with lawmakers shaping the 2027 budget.
