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France Eyes TV VAT Hike: Canal+ Fights Back
22 Oct
Summary
- Canal+ is opposing a French proposal to double TV subscription VAT.
- The company warns of subscription price increases if the VAT rises.
- Despite challenges, Canal+ remains on track for full-year guidance.
A significant proposed increase in France's Value Added Tax (VAT) for TV subscriptions is being met with strong opposition from Canal+. The proposal, which would elevate the VAT rate from 10% to 20%, has prompted Canal+ to rally support from various cinema organizations, federations, and leagues. The company has indicated that if the VAT hike is enacted, it will be compelled to raise subscription prices and undertake substantial cost-reduction initiatives to mitigate the financial strain.
In its Q3 trading update for 2026, Canal+ reported that its revenue remained nearly unchanged compared to the previous year, hovering just above €2 billion. This figure accounts for the substantial $2 billion acquisition of African media giant MultiChoice. For the first nine months of 2026, group revenue saw a notable 37% increase, reaching €6.3 billion, largely attributed to the successful integration of MultiChoice.
Canal+ is also implementing cost-saving measures within Africa following the MultiChoice acquisition, including the discontinuation of the streamer Showmax. The company anticipates a strong 2026 for Studiocanal, highlighting upcoming projects like the war drama Pressure and an adaptation of Les Misérables. Despite the looming VAT increase and other economic factors, Canal+ is confident in achieving its full-year financial outlook and its €250 million synergy target.
