Canal+ Warns of 2027 Price Hikes if France Doubles Pay-TV VAT
Updated: 6 days ago
TL;DR: Canal+ has warned French subscribers it will be forced to raise prices if the 2027 budget doubles pay-TV VAT from 10% to 20%.
A tax rise passed straight to the customer
Canal+ has notified its French subscribers that it would be 'forced' to increase subscription prices if the government's draft 2027 budget goes ahead and doubles the VAT on paid television from the reduced 10% rate to the standard 20%, according to CB News. The group has been explicit that any such increase would be passed through to the final price customers pay.
The move is not purely defensive. Canal+ has also updated its terms to give subscribers a no-fee right to terminate if prices rise because of the VAT change, and press reports suggest some offers could edge toward around 27 euros a month. Telling customers now, before anything is law, is a deliberate choice.
A 200m-euro hit on a group already in the red
Canal+ estimates the VAT change would represent a shock of more than 200 million euros for a group that is already running at a loss, per Upside24. That is not an abstract accounting worry: the company has warned it could be forced to trim investment in cinema and sport, the very content that justifies its premium positioning.
It is also fighting on other fronts. Canal+ settled a previous VAT dispute for 363 million euros in 2025 and remains under investigation by France's competition authority, the Autorite de la concurrence. Against that backdrop, a fresh 10-point tax rise is a serious threat to the business model.
Why Marketing Minute reads this as a pressure play
A 10-point VAT jump would land directly on consumer pricing in a pay-TV market that is already shedding subscribers to streaming. Publicising the threat early, and framing it as a government-imposed cost, is as much a lobbying tactic aimed at lawmakers as it is a customer-service gesture. Canal+ wants the budget changed, and public pressure helps.
What subscription businesses should do
The lesson for any subscription brand facing a cost shock is to pre-draft transparent price-change and cancellation communications rather than scramble later. Give customers the 'why', the 'how much' and a clean exit. Modelling where you would cut, as Canal+ is signalling on content, also forces an honest conversation about which spend truly drives retention.
Quick FAQ
Will Canal+ raise its prices in 2027?
Canal+ says it would be forced to raise subscription prices only if the 2027 budget doubles pay-TV VAT from 10% to 20%; the increase is not yet law.
What is the proposed pay-TV VAT change in France?
The draft 2027 budget would scrap the reduced 10% VAT rate on paid television and apply the standard 20% rate instead.
When a tax change is coming, telling customers early and giving them a clean way out is far cheaper than losing their trust later. Canal+ is doing the hard thing well: being transparent about why prices might move, rather than quietly slipping a higher number onto the next invoice and hoping nobody notices. - Daniel Nikolla, Founder of Merx Marketing
If a cost shock is heading for your prices, say so early and give customers a fair exit; transparency protects loyalty better than silence ever will.
Would an honest heads-up about a price rise make you more or less likely to stay with a brand?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
Sources: CB News, Journal du Geek, Upside24.
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Written by Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
