Maxime Saada criticizes the increase in VAT on pay television

Maxime Saada, chairman of the board of directors of Canal+, criticized Monday October 5 on RTL the government's desire to double the VAT rate, the latter applying to pay television. Currently, subscriptions to traditional pay channels, that is to say which broadcast their programs in real time, benefit from a reduced VAT rate of 10%, compared to 20% for platforms whose model is built on on-demand programs, such as Netflix.

Canal+ offers both types of service, and the reduced rate of 10% applies to most of its activities. However, the 2027 draft budget plans to “simplify the VAT regime applicable” to pay television by removing the reduced rate. Hence the anger of the chairman of the board of directors of the Canal+ group.

“The founding pact of Canal+ is a reduced VAT rate”

"The founding pact of Canal+ from 1984 is a reduced VAT rate, the VAT rate for culture, books, cinema tickets, stadium tickets for Canal+, Maxime Saada reported on Monday on RTL. And in return for that, Canal+ finances cinema well beyond its obligations. Today, Canal+ finances French cinema more than all the other French and American actors combined."

“The commitment we have with cinema organizations is a contract. The first of the clauses (...) is the reduced VAT rate,” insisted the boss of Canal+. With an increase in VAT, “the contract will collapse mechanically,” he warns. Canal+ was initially supposed to invest nearly a billion over five years, recalled Maxime Saada. “We have just signed a 2028-2032 agreement. This agreement will fall if the VAT rate applies.”

This means a drop in financing: "Maybe half, maybe three quarters fewer films. I'm not exaggerating. We can't find ourselves in a situation where we're going to lose 200 million euros (...). My subject is the sustainability of the group."

“An absurd decision”, which “can only be political”

The boss of Canal+ denounced “an absurd decision which makes no economic sense”, and which therefore “can only be political”. “What is certain is that it is not an economic gesture because the measure is anti-economic” and could cost Canal+ 200 million euros per year, he added. Maxime Saada then responded to a question on the possibility of a retaliatory measure from the government because the main shareholder of Canal+, which owns CNews, is the conservative billionaire Vincent Bolloré.

For Maxime Saada, "we find ourselves with a decision which destroys all the financing of French cinema" while "a month ago President (Emmanuel) Macron said that it was necessary to preserve the treasure that is the French cultural exception". Regretting not having been heard by Bercy, the boss of Canal+ indicated that Canal+ was going to "discuss with the parliamentarians" who will examine the finance bill: "Nothing is decided, we hope to change the trajectory of this text."

“Who will replace Canal+ to finance sport and cinema?”

Canal+ “is the only French and even European company which is present in 70 countries and which can hope to compete with American players,” said Maxime Saada. “Who will replace Canal+ to finance sport and cinema” in France?

Thirteen cinema organizations have written to Emmanuel Macron to express alarm at the “dramatic consequences” of such a measure while Canal+ has committed to investing 980 million euros between 2028 and 2032 in French and European cinema. The sports sector was also concerned about the proposed increase in VAT for pay television.