In June 2022, Bercy decided to increase Canal+’s VAT rate. As the crypto channel negotiated for a 5.5% cut, it ended up with a 20% rate. Unsurprisingly, Canal+ intends to pass on this increase to subscribers, even if the channel will absorb part of it.
At the end of December 2021, Canal + was on a small cloud after the signing of the agreement providing for the establishment of a new media chronology particularly advantageous for it. The group led by Maxima Saada preserves its position as the main funder of the 7th French art, in exchange an investment of 200 million euros per year over three years to participate in French production.
In return, Canal+ now has the right to broadcast the latest films released in theaters on its channels after only six months, compared to 15 months for Netflix and 17 months for Disney+ and Amazon Prime Video. However, and to weigh even more against the American streaming giants, Canal+ had started negotiations with the Ministry of Finance to reduce its VAT rate from 10% to 5.5%.
In June 2022, the administration gave its answer: Canal+’s VAT rate will increase to 20%. In the eyes of Bercy, the services offered by Canal+ are getting closer and closer to two offered by streaming platforms. Fact, the institution did not see why Canal+ would escape the 20% VAT rate applied to Netflix and others.
Also read: Canal+ will continue to broadcast M6 channels, failing to renew its contract with TF1
Canal+ increases the price of its offers because of the doubling of its VAT
Unsurprisingly, Canal+ had confirmed that this increase in VAT would have repercussions on the price of some of its offers, especially those without commitment. And indeed, the new rates are starting to be applied. The Pack Ciné Series formula for those under 26 is the first concerned. Previously displayed at €20.49 per month, the bill now increases to €22.99 per month as revealed by Canal+ in an email sent to users.
“You are currently benefiting from the – 26 years Canal+ offer and we hope that you are taking full advantage of your programmes. From your next monthly renewal date, and in accordance with your general subscription conditions, the Offer – 26 years old Canal+ Ciné Séries will be renewed for successive periods of one month at the price excluding promotions and options of €22.99 ”, writes the encrypted string.
Hello, the VAT rate applicable to some of our offers is now 20%, this increase forces us to increase the price of your subscription, CANAL+ collecting VAT on behalf of the Public Treasury. I apologize for the inconvenience caused. ?
— CANAL+ SUBSCRIBER INFO (@InfoAbonneCanal) October 26, 2022
We regret the flagrant lack of transparency in the email from Canal+, which avoids recalling the previous price and above all which completely obscures the reasons for this increase, in this case the increase in its VAT rate. Users have also sought to contact Canal + on social networks to find out more about these new prices.
Via the Canal+ Subscriber Info Twitter account, the chain was more talkative : “Hello, the VAT rate applicable to some of our offers is now 20%, this increase forces us to increase the price of your subscription, Canal+ collecting VAT on behalf of the Public Treasury. I apologize for the inconvenience caused.” It’s a safe bet that other non-binding offers such as the one offering the Canal+ channel will also undergo similar increases in the course of 2023.