Canal+, a prominent French broadcaster, has announced it will withdraw its four pay-TV channels from terrestrial television (DTT) in June 2025. This decision impacts Canal+, Canal+ Cinéma, Canal+ Sport, and Planète+, affecting approximately 70,000 subscribers—a mere 1% of the group's total French customer base.
The announcement arrives just days before a crucial Vivendi shareholder meeting. Should the proposed demerger of Vivendi into four independent entities (including Canal+) be approved on December 9th, Canal+ will list on the London Stock Exchange from December 16th. This decision also follows the non-renewal of C8's DTT authorization in 2025.
“Drawing on the consequences of Arcom’s withdrawal of C8, the leading DTT channel, and an increasingly restrictive tax and regulatory environment for the group in France, Canal+ is announcing the withdrawal of its pay-TV channels from DTT,” stated the press release. However, the Arcom decision isn't the sole factor. Canal+, having previously threatened to leave DTT, cites “constantly subjected to tax and regulatory decisions that penalise its operations in France: an increase in the tax it pays to the CNC, threats to its VAT rate, which is directly linked to its status as the leading funder of French cinema, and finally the decision to withdraw from C8, the leading DTT channel. This decision, as the Canal+ group has repeatedly pointed out during its public hearings, has profoundly unbalanced the business of its pay-TV channels on DTT.”
A significant factor is the VAT increase on some Canal+ offerings from 10% to 20% in 2022, resulting in an estimated €200 million additional cost. Despite appealing the decision, their case was dismissed. Further, the Paris Administrative Court rejected Canal+'s petitions seeking reimbursement of €87.3 million paid to the CNC.
Despite this move, Canal+ will retain two free-to-air channels, CNews and CStar, on DTT. The withdrawal of its pay channels from DTT is noteworthy, considering Canal+'s origins as a pay channel exclusively distributed via analogue terrestrial distribution.