Canva, the popular design platform, has recently announced a steep increase in prices for some of its customers, and one of the factors behind this decision is the implementation of generative AI. Canva Teams subscribers in the U.S. on older pricing plans have witnessed a significant jump in the cost of a five-person plan, skyrocketing from $119.99 per year to $500 per year, albeit with a 40% discount for the first 12 months. Meanwhile, in Australia, the flat monthly fee of $39.99 AUD (approximately $26 USD) for up to five users has been raised to $13.50 AUD per user.
Individual users will now have to pay $100 per person, or $10 per month per person, with a minimum requirement of three people for a Teams plan. Although these prices were quietly changed earlier this year for new customers, Canva is now adjusting the price for existing customers who had previously paid a lower price. However, it’s important to note that these price changes do not apply to Canva’s Pro or Enterprise tiers.
In a statement to TechCrunch, a Canva spokesperson confirmed the new price points and highlighted the company’s expanding suite of generative AI tools, including Magic Studio, as a reason for the adjustments. The spokesperson also mentioned that some customers had been locked into lower prices that Canva no longer offers. The company updated its Teams pricing earlier this year to $10 per month for each user, reflecting the growth and evolution of its product experience.
These price hikes have not been well received by Canva users, especially considering that the company communicated the changes through customer emails rather than a public announcement, as it had done in the past. This departure from Canva’s roots as an affordable alternative to design software like Adobe’s has raised concerns among users. It may also indicate that the startup is growing too quickly, as evidenced by its recent acquisitions of U.K.-based graphic design software firm Serif for approximately $380 million and generative AI image company Leonardo.
Canva’s decision to increase prices is likely driven by the need to support its growing suite of generative AI tools and its preparations for an impending IPO. While some customers may be disappointed by the price changes, it is crucial to acknowledge the company’s need to adjust its pricing structure to reflect its expanded product experience. As Canva continues to innovate and enhance its offerings, it will be interesting to see how users respond to these changes and whether the platform can maintain its position as a leading design tool in the industry.
