In a strategic twist, Canal+, the French media giant owned by Vivendi, is pulling its paid channels off terrestrial TV in France starting June 2025. While the announcement may seem a significant shake-up for viewers and competitors, the company pointed at mounting challenges, such as a “restrictive tax and regulatory environment,” as reasons behind the move. These challenges were compounded by the regulatory troubles surrounding Canal’s C8 channel, which failed to secure a renewed licence earlier this year. The fines, amounting to €7.6 million, were a result of breaches tied to controversial content from star presenter Cyril Hanouna. Additionally, financial strains on the tax front include disputes with VAT regulations and the CNC levy — adjustments that could potentially cost the company dearly.
The French government’s stance on cultural funding and taxation has only added more pressure. Although efforts to maintain reduced VAT rates for cultural goods were aimed at supporting affordability, the state now seeks to impose a 20% tax rate on some of Canal+’s services, a move that could result in a hefty €655.6 million adjustment fee. Critics, however, have raised doubts about the sincerity of Canal+’s stated reasons for exiting terrestrial TV. They argue that the departure was part of a long-term strategy orchestrated by CEO Maxime Saada. Though Saada has publicly supported terrestrial TV in rhetoric, his actions, such as the 2023 decision to shorten licence renewal periods from three years to 18 months, suggest a gradual withdrawal plan.
As Canal+ prepares for a significant milestone — a London Stock Exchange listing expected to secure a market value of up to €8 billion — the strategic decision to exit terrestrial TV sends ripples through the media landscape. The listing would mark the largest primary offering on the London exchange since 2022, showcasing Canal+’s ambitions to solidify its market presence beyond France. With around 70,000 terrestrial subscribers still under its belt, the company is now poised to navigate the complexities of international investments, regulatory scrutiny, and a shifting cultural landscape — a bold move that could redefine Canal+’s role in global media markets while recalibrating France’s broadcast industry dynamics.
(Source: Advanced Television | TVB Europe)
