Introduction

In a significant shift for French television, the Canal+ group has announced that it will withdraw its four pay-TV channels from Digital Terrestrial Television (DTT) by June 2025. The channels affected include Canal+, Canal+ Cinéma, Canal+ Sport, and Planète+. This decision is poised to impact around 70,000 subscribers, representing roughly 1% of the group’s total customer base in France.

Key Details of the Withdrawal

The announcement comes right before a crucial shareholders' meeting scheduled for December 9, where the proposed demerger of the Vivendi group into four independent entities, including Canal+, will be on the agenda. If approved, this could mean Canal+ makes its debut on the London Stock Exchange by December 16.

Reasons Behind the Decision

The move follows a broader trend of regulatory and tax challenges within the French broadcasting environment, particularly the non-renewal of the DTT authorization for the channel C8, which is managed by Canal+. A Canal+ press release highlighted the impact of Arcom's (the French regulatory body for audiovisual communications) decision to withdraw C8, which has historically been a leading DTT channel. This, alongside an increasingly stringent tax regime, has compelled Canal+ to take drastic measures regarding its pay-TV offerings.

Historical Context

Interestingly, Canal+ has previously threatened to exit DTT. The group cites ongoing tax and regulatory pressures that hinder its operations in France. This includes a significant VAT hike on its services—from 10% for linear TV to 20% for online video services in 2022—resulting in an additional cost exceeding €200 million. Although Canal+ sought to challenge this new tax rate through the French Conseil d’Etat, their appeal was dismissed last July.

Financial Pressures

Moreover, recent reports indicate that French tax authorities are demanding adjustments totaling €655 million from the group, and the Paris Administrative Court has also rejected Canal+'s request for reimbursement of €87.3 million in television service taxes for previous years.

Future Outlook

Despite pulling its pay channels from DTT, the Canal+ group plans to maintain two free-to-air channels: CNews, a news channel, and CStar, which focuses on music and entertainment content. The withdrawal from DTT marks a noteworthy evolution for Canal+, which initially launched as a pay channel distributed solely through analogue terrestrial methods.

Conclusion

As viewers and industry insiders brace for what this could mean for the future of television in France, many are left wondering: Is this the beginning of the end for DTT pay channels? Or will other platforms emerge as viable alternatives in the evolving landscape of broadcast media? Stay tuned for further developments!