Design platform Canva has significantly increased prices for some of its customers, partly attributing the change to the introduction of generative AI. The company has implemented these changes for its Teams subscription, affecting users on older plans.
Pricing Details and User Impact
Some Canva Teams subscribers have observed a substantial price hike. For instance, a five-user subscription has increased from $120 to $500 per year, after a 40% discount for the first 12 months. In Australia, a five-user subscription previously cost AUD$40 (about $27) per month and is now AUD$13.50 ($9) per user. The new pricing structure requires a minimum of three people to subscribe, with costs set at $100 per year or $10 per month per person. These changes were initially introduced for new customers at the beginning of the year but are now being applied to existing users who previously paid less. It’s important to note that these adjustments do not affect Canva Pro or Enterprise plans.
Company Response and Future Outlook
A Canva representative confirmed the pricing policy change to TechCrunch, explaining that the company now offers a wide range of services based on generative AI, including Magic Studio. This development is cited as the primary reason for the price adjustments. As Canva prepares for its public offering, some users have expressed dissatisfaction with the price increase, particularly criticizing the company’s method of announcing the changes via email rather than through a public statement, as was done previously.
The new pricing structure marks a shift from Canva’s initial positioning as an affordable alternative to Adobe’s design software, concludes NIX Solutions. This move may also reflect the company’s recent growth initiatives, including the acquisition of British graphic design software developer Serif for $380 million in March and image generator developer Leonardo in August.
We’ll keep you updated on any further developments regarding Canva’s pricing strategies and user responses as more information becomes available.