Canal+ warns of reduced sports and film investment if TV tax doubles
The government plans to raise the VAT on pay-TV services from 10% to 20%, prompting Canal+ to threaten cuts to its cinema and sports funding.
France's 2027 finance bill seeks to simplify VAT rules for pay-TV by removing one outlet 10% reduced rate that applies to linear channels, raising it to the standard 20% used for on-demand services. Canal+ argues that this policy shift would constitute a direct attack on its core activities in the country, jeopardising its ability to fund French cinema and sports broadcasting. The group warned that higher taxes could affect subscription prices, staffing levels, and its contributions to the broader film and sport ecosystems.
In response, Canal+ said it would consider accelerating its push into international markets. The proposal has drawn objections from thirteen film organisations and the Ligue nationale de rugby, which fear a weakening of financial support for their sectors.
Why it matters
A higher tax on pay-TV could reduce funding for French movies and sports, affecting cultural and one outlet industries.
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