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France Eyes TV VAT Hike, Canal+ Fights Back
22 Oct
Summary
- Canal+ opposes a proposal to double French TV VAT to 20%.
- The company may raise subscription prices and cut costs if adopted.
- Canal+ revenue is flat year-over-year, excluding MultiChoice acquisition.
Canal+ has reported making progress in its opposition to a controversial French proposal that would double the VAT on TV subscriptions to 20%. The company has garnered support from various cinema organizations and federations. Should the proposal become law, Canal+ has indicated it would implement subscription price hikes and cost-reduction measures to offset the financial impact.
In its Q3 trading update, Canal+ revenue remained nearly flat compared to the previous year, totaling just over €2 billion, when the acquisition of African giant MultiChoice was not considered. However, group revenue for the first nine months of 2026 saw a significant 37% increase to €6.3 billion, largely driven by the MultiChoice deal.
Canal+ is also navigating cost reductions in Africa following the MultiChoice buyout, including the discontinuation of the streamer Showmax. The company remains on track to meet its full-year financial guidance and a €250 million synergy target, despite the uncertain macroeconomic and political climate.
Studiocanal, the content division, experienced an 8% revenue increase to €173 million. The boss, Maxime Saada, highlighted 2026 as a landmark year for Studiocanal, anticipating significant releases like the war drama 'Pressure' and an adaptation of 'Les Misérables,' with 'Elsinore' being touted for potential Oscar recognition.
