CANAL+ warns subscribers of potential price hikes due to VAT changes

CANAL+ has notified its subscribers that subscription prices could increase if the 2027 budget proposal is adopted. The French government's draft budget aims to eliminate the reduced 10% VAT rate currently applied to paid television services, moving them to the standard 20% rate to simplify a complex tax system involving linear TV, replay, and on-demand services.

As the primary operator affected, CANAL+ estimates the potential impact could reach 200 million euros annually in revenue and operating margin. The group stated it would be forced to pass the tax increase directly to customers. While a jump from 10% to 20% VAT represents a ten-point increase, the actual impact on the final price paid by subscribers would be approximately 9.1% if the pre-tax price remains unchanged.

Maxime Saada, Chairman of the Management Board, noted that because most subscribers are committed to one or two-year contracts, any price hikes might not take effect until 2028 or 2029. The company has updated its general terms and conditions to reflect this possibility, noting that subscribers will have the right to terminate their subscriptions if the tax increase is confirmed.