A plan to double the VAT on French TV subscriptions from 10% to 20% has forced Canal+ to spell out its contingency playbook. In its Q3 trading update, the group said it has support from “cinema organisations, federations and leagues” and will keep fighting the proposal, even as the outcome remains uncertain.
The quarterly picture
Canal+ revenue was virtually flat in Q3 at just over €2 billion ($2.25 billion) once the $2 billion acquisition of African operator MultiChoice is included. For the first nine months of 2026, group revenue climbed 37.5% to €6.3 billion, with MultiChoice the main contributor.
- Q3 revenue: just over €2B, flat year on year
- Nine-month revenue: €6.3B, up 37.5%
- Content division: €173M, up 8%
- Full-year guidance maintained; €250M synergy target
What the tax change would do
The proposed increase would double the VAT load on TV subscriptions. Canal+ was blunt about the consequence: the group “would be unable to absorb such a loss in France” and would have to adjust operations in mainland France and the Overseas Territories. If the measure becomes law, it plans subscription price increases and significant cost-reduction initiatives.
For streaming and pay-TV operators, that stance is instructive. Instead of waiting for the vote, Canal+ has already lined up price action, cost levers and coalition support. Media planners should model demand sensitivity now: a 10-point VAT increase effectively raises the consumer price of the same bundle.
MultiChoice, Showmax and content
Canal+ has been reducing costs in Africa since the MultiChoice buyout. Its Showmax streamer was discontinued earlier this year, a decision that shocked the local industry. The new MultiChoice offer will continue rolling out across English and Portuguese-speaking Africa in the coming months.
Studiocanal’s content division grew revenue 8% to €173 million. CEO Maxime Saada called 2026 a “landmark” year for Studiocanal, pointing to Anthony Maras’ war drama Pressure, Fred Cavayé’s Les Misérables adaptation starring Vincent Lindon and Tahar Rahim, and Elsinore with Andrew Scott, which is being positioned for Oscars.
The outlook
Canal+ said it remains “well on track” for full-year guidance and its €250 million synergies target. Medium-term guidance is unchanged. The big variable is Paris: if the VAT proposal passes, the next chapter will be price rises and cost cuts, not just content spending.
Source: Deadline
