Canva, the design platform, is imposing a substantial price increase on specific consumers, attributing the increase to generative AI
In the United States, certain Canva Teams subscribers on prior pricing plans are experiencing a price increase from $119.99 per year to $500 per year for a five-person plan. This price increase is subject to a 40% discount for the first 12 months. Australia has increased the monthly fee for up to five users from AUD 39.99 (approximately $26) to AUD 13.50 per user per month, with a three-user minimum.
Canva Teams prices are currently $100 per person or $10 per month per person on an individual user basis. A Teams plan requires a minimum of three users. The company has applied the new pricing to customers who had previously paid a lesser rate, even though these prices were quietly changed for new customers earlier this year.
The fee changes will not affect the Pro and Enterprise Canva tiers.
A spokesperson for Canva verified the new price points in a statement to TechCrunch and attributed the changes to the company’s expanding collection of generative AI tools, which includes Magic Studio. Additionally, they observed that certain customers of Canva had been contractually bound to reduced prices that are no longer available.
Earlier this year, Canva implemented a covert adjustment to its Teams pricing, which now includes a monthly fee of $10 for each user.
The spokesperson stated, “Our initial pricing was indicative of the product’s infancy and has remained constant for the past four years.” “We are revising the price for customers on this outdated plan to align with our broader product offerings.”
Canva’s recent pricing increases, which coincide with the company’s preparation for an initial public offering, have not been well received. Users have expressed dissatisfaction with Canva’s decision to communicate the changes through customer emails rather than publicly, as it has done in the past.
Canva’s new pricing represents a significant departure from its origins as an affordable alternative to design software such as Adobe’s. Additionally, it may indicate the startup’s rapid expansion; in March, Canva acquired Serif, a graphic design software company based in the United Kingdom, for approximately $380 million. In August, it acquired Leonardo, a generative AI image company.