Canva Clarifies Dramatic Price Increase Amid Cutting-Edge AI Features
The design software company is significantly increasing subscription prices for certain users.
By Syazwan Bahri — 04 Sep 2024, 03:02 PM
Canva is planning a substantial price hike for some of its subscriptions next year, driven by its aggressive introduction of generative AI features
Canva Teams, a subscription tailored for businesses that allows multiple users, will see prices rise by over 300% in some cases.
Canva Teams is updating to USD10 (RM43.33) per month, per seat, with a minimum of three seats required for a Canva Teams subscription. On an annual basis, this is now USD100 (RM433.36) per person, with a minimum of three seats required, a total annual cost of USD300 (RM1300.10).
Canva justifies the increase by pointing to the "expanded product experience" and the added value from the new AI tools.
Some Canva Teams users in the US are reporting that their subscription costs have skyrocketed from USD120 (RM520) per year for up to five users to a staggering USD500 (RM2,174) per year
A 40% discount will reduce the price to USD300 (RM1,304) for the first 12 months.
In Australia, Canva Teams will increase to AUD13.50 (RM39.35) per month, per user, with a minimum of three users (AUD40.50/RM118 in total for all three users). On an annual basis, it will be AUD135 (RM393.47) per user, with a minimum of three users (AUD405/RM1180.42 per year, for all three users).
Over the past few years, Canva has introduced a range of generative AI features
Examples include the Magic Media text-to-image generator and the Magic Expand background extension tool. These additions have expanded Canva's scope, evolving it from a platform primarily for design and marketing professionals into a more comprehensive workspace solution.
While Canva has previously announced pricing changes publicly, these latest increases were reportedly communicated only through customer emails. Other subscription tiers, such as Pro and Enterprise, don’t seem to be affected by these changes.
Canva's move to premium pricing marks a significant shift from its original positioning as a simple and affordable alternative to pricier graphic design software
The steep price hikes have sparked a backlash among users, with many expressing their frustration online and some even stating they'll cancel their subscriptions in favour of Adobe applications. These price increases come on the heels of Canva's acquisition of the company behind Affinity's creative software suite.
Canva clarified that users receiving price change notifications are currently on its original launch pricing
The company explained to SAYS Tech that the launch pricing reflected the early stage of its offerings and product, and has remained unchanged since then.
"This pricing included a special offer of five seats for the price of one, which provided a generous amount of value to reflect the smaller number of features and collaborative tools when we first launched," a spokesperson from Canva explained.
The spokesperson added that customers who joined Canva Teams after mid-April 2024 are already on the updated rates, which reflect the significant evolution of the product since their unchanged launch price plan.
"We know price changes aren't always easy and we want to ensure this is a smooth transition for our community. To support this, anyone impacted by an adjusted price will receive 12 months of discounted pricing before the new pricing plan takes effect," the spokesperson said, adding that at USD10 (RM43.33) per seat, Canva Teams remains the most comprehensively affordable product in the market.
You can learn more about Canva's pricing here.
