The measure, included in the government’s proposed finance bill, would scrap the reduced 10% VAT rate currently applied to subscription-based services and bring it in line with France’s standard 20% rate. Canal+, by far the country’s biggest pay-TV operator and one of the main pillars of French film financing, would be hit hardest, representing a cost of approximately €200 million a year.
“We cannot find ourselves in a situation where we’ll lose €200 million in France. My concern is the group’s long-term viability,” said the Paris-based executive.
The pay TV group was behind six movies that played at Cannes this year, notably Quentin Dupieux’s “Full Phil” starring Kristen Stewart and Woody Harrelson, and Jeanne Herry’s “Garance” starring Adèle Exarchopoulos.
