VAT hike: Canal+ threatens to cut its support for cinema
As the government drafts its 2027 budget, Canal+ is alarmed at plans to double VAT on pay TV. Boss Maxime Saada threatens to cut film funding, endangering a sector the group still largely bankrolls.
By Laure Valentin
Published on 05/10/2026 - 15:30 GMT+2•Updated 15:43
Tensions are rising between Canal+ and the government. As the executive prepares its 2027 budget, Maxime Saada is openly opposing plans to scrap the reduced VAT rate enjoyed by pay television. The Canal+ chief executive considers the measure "political" and "absurd", and says it would mean an extra cost of around 200 million euros a year for the group.
Raising VAT from 10% to 20% could, in his view, lead to higher subscription prices, but also internal cost-cutting and job losses.
"We cannot absorb 200 million euros", says the executive, speaking to RTL, warning that Canal+ will have to rethink its spending.
Cinema as a pressure tactic
Canal+ plays a central role in financing French cinema. In 2025, the group invested 155.6 million euros in French films and helped fund 148 productions. It thus accounts for almost half of the investments made by traditional private broadcasters. Any reduction in its spending could therefore have a direct impact on production.
This is precisely where the threat is taking shape. Canal+ was due to invest 980 million euros in French and European cinema between 2028 and 2032. But Maxime Saada warns that if VAT is doubled, these commitments could be scaled back. He even raises the possibility of funding "perhaps three-quarters fewer films".
This stand-off comes in a context of already heightened tensions around Canal+. In May, Saada announced that the group no longer wished to work with the signatories of an op-ed criticising the influence of conservative billionaire Vincent Bolloré, who controls Canal+.
The Human Rights League and the CGT-Spectacle union have since taken legal action, denouncing discrimination based on opinion.
With its 2027 budget, the government is seeking to bring the public deficit down from 5.4% to 5% of GDP. The VAT rise for Canal+ is part of this hunt for additional revenue, but opens up a new front with a group determined to defend its margins and its role in French creative industries.
