The 2027 budget, unveiled by the Council of Ministers on October 1st, focuses on two key areas of French cultural production: public television and the private channel Canal+. The overall budget for public audiovisual services is set to decrease from 3.863 to 3.816 billion euros. France Télévisions, which is responsible for most of the country’s original television content, will see its funding reduced by 47 million euros. This follows an 80 million euro cut in 2026, and its president, Delphine Ernotte Cunci, estimates that the total reduction for 2027 will amount to 90 million euros. This comes amid declining advertising revenue and rising inflation. According to an internal source cited by AFP, the original programming budget of France Télévisions is expected to fall to 380 million euros next year. The group has already cut a dozen original fiction evenings annually, and some sports rights, including those for the Coupe de France, might be reduced as well. Producer unions such as SPI, Uspa, and AnimFrance have criticized the government's restructuring plan as overly harsh. On the private sector side, the cuts are even more drastic. The reduced value-added tax (VAT) rate of 10% applied to pay television services is being increased to 20%, impacting Canal+ and Ligue 1+. The French finance ministry, Bercy, argues that the distinction between pay channels and streaming platforms is no longer relevant. This change is expected to cost Canal+ about 200 million euros annually. According to Les Échos, the channel may reduce its investments in cinema. Ligue 1+, the professional football channel, is also affected by the new tax. The previous 10% rate had been a way to compensate Canal+ for its commitments to support French cinema, which include investing 980 million euros between 2028 and 2032. The Syndicat des Audiovisuels et de la Communication (SACD) sees the new tax as a challenge to a cultural tax granted in exchange for these commitments. The state maintains its obligations but takes back the financial benefits. The budget also aims to rebalance funding for the CNC (National Center for Cinema and Audiovisuals). The 66% discount that YouTube and TikTok previously received on the video tax is being reduced. YouTube’s contribution to the CNC is expected to rise from about 15 to 30 million euros annually. While this increase is real, it comes at a high cost. The CNC would receive 15 million more from YouTube, but the state would lose 200 million euros from Canal+. The policy marks a shift in the "cultural exception" policy, which previously focused on regulating new digital platforms. Now, the broader cultural law is catching up with traditional media. The CNC currently avoids any withdrawal from its reserves or limits on its allocated taxes. However, this situation is more of a temporary reprieve than a long-term guarantee, as Bercy requests the freezing of the budgets of CNC’s operators. The timing of these measures adds a layer of political irony. Just months before the presidential election, each candidate will be asked to state their stance on cultural funding and who should bear the cost. The debate over the future of French audiovisual and cinematic production is likely to become a central issue in the upcoming political discourse.