Canal+ Says It Is Making Progress Against a Plan to Double TV Subscription Tax in France
Canal+ says it has made progress against a French plan that would double the tax on TV subscriptions, but it warns the result is still uncertain.
The proposal would raise value added tax (VAT, a sales tax added to the price of goods and services) on TV subscriptions from 10% to 20%. It appears in a draft budget presented by Prime Minister Sébastien Lecornu. In its third-quarter update, Canal+ said it has gained support from "cinema organisations, federations and leagues" in opposing the increase.
The company has been pushing back for weeks. In early October it called the plan a "direct attack" on its activities in France. It warned the increase could cost it €200 million a year. It also said the change could mean job cuts, higher subscription prices and internal savings. Euronews reported that Canal+ linked the plan to possible cuts in its film investment and its support for cinema.
The rate rise would hit overseas territories hardest. Canal+ has said the proposal would quadruple the VAT rate in those areas.
Canal+ says it cannot absorb a loss of that size in France. If the measure becomes law, it plans to raise subscription prices and make significant cost cuts. It also said it would have to change how it runs its operations in mainland France and the Overseas Territories.
The company's numbers for the year so far are more mixed. Revenue for the July to September quarter was just over €2 billion. That is virtually flat on the same quarter last year once the MultiChoice acquisition is taken into account. MultiChoice is the African pay-TV group Canal+ bought. For the first nine months of 2026, group revenue rose 37.5% to €6.3 billion.
Canal+ said it is well on track to meet its full-year guidance, which is its own forecast for the year. It also said it is on track for a €250 million synergies target. Synergies are savings from combining two businesses. It made both statements despite the proposed VAT hike.
Earlier in 2026, Canal+ also shut down Showmax, its streaming service in Africa, as part of cost cuts after the MultiChoice buyout.
For viewers, the main question is what the price on their bill could do. For the people who work on Canal+ shows and films, the question is whether their jobs and projects stay funded. Canal+ has not said which, if either, will change. The draft budget is still a proposal, and the company says the outcome is uncertain.
