Canal+ announced the news in a statement on Monday. The VAT rate applied to some offers has been increased from 10% to 20%. The encrypted channel recently received a letter from the tax authorities warning of this important change from an economic point of view. The leaders of the channel group will analyze the scope and consequences of this increase imposed on it and “possible remedies“.
To compensate for this huge financial loss (200 million euros according to Les Echos) this increase will cause, Canal has already warned its subscribers “whose contract is expiring soonnotifying them of this change and announcing a parallel increase in their price. This will affect new subscribers as well as subscribers who have taken advantage of a non-binding offer. Their contract lasts 12 to 24 months, which will be exempt from this increase.
In contrast, beIN Sports charges 10% VAT mainly on live broadcast content. Led by its director Maxime Saada, Canal wanted to lower its tax to 5.5% to be more competitive than streaming platforms like Netflix. He missed.
Thibaut Falconnat
Source: Programme Television
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