France’s film-financing model is built on two pillars: public money and a private pay-TV contribution. More than 170 filmmakers now say the proposed 2027 budget would hit both at once—and they have put the damage in blunt numbers: 400 films lost over five years.
The warning
In an open letter published in Le Monde on Wednesday (October 14), directors including Justine Triet, Jacques Audiard, Jean-Pierre and Luc Dardenne, Claire Denis and Costa-Gavras warned the finance bill “risks causing an unprecedented disappearance of French cinema from our screens.” They estimate it would mean 80 fewer films made each year.
The letter landed as France’s National Assembly prepares to examine the 2027 finance bill. Signatories are calling for protection of Canal+, France Télévisions and the CNC, and for a cinema-specific law to replace audiovisual rules dating from 1986.
The numbers behind the alarm
- VAT on pay-TV: proposed to rise from 10% to 20%; Canal+ says that could cost up to €200m a year.
- Production pipeline: filmmakers estimate €750m less investment, or 80 fewer films a year and 400 over five years.
- Public funding: France Télévisions faces a €47m cut in 2027, and the state could take money directly from the CNC.
- Existing commitment: Canal+ signed a €980m, five-year deal in July for 2028–2032, but it can be suspended if VAT rises.
Why this matters beyond France
Canal+ is France’s leading private financier of cinema; its €980m agreement was designed to support roughly 100 co-productions a year. The signatories note the sector carries 260,000 direct and indirect jobs, while French films make up around 40% of domestic cinema admissions. If the largest private contributor can suspend its deal, the effects move into development slates, distribution slots and licensed content.
The letter also ties the cuts to wider pressures: far-right calls to abolish the CNC and public broadcasting, and what signatories call the standardisation of content by mostly US platforms. A line about VAT is therefore also a debate about whether a protected film ecosystem keeps its leverage.
What to watch next
The VAT measure is part of a wider budget seeking €54bn in savings to reduce France’s deficit, and it can still be amended in parliament. Filmmakers want MPs to maintain the 10% VAT rate in exchange for investment commitments, protect the CNC’s budget and modernise the legal framework. Canal+ has called the proposal a “direct attack” on its activities in France.
Until the amendment votes are clear, treat French output assumptions as provisional. For buyers and planners, this is a case study in how a budget line becomes a content-supply shock—model the policy risk before locking a slate.
Source: Screen
