Canva, the popular design platform, has announced substantial price hikes for its Teams product, attributing the increase partly to its investments in generative AI technology.
In the United States, Canva Teams subscribers on legacy plans are facing dramatic increases, with the cost for a five-person plan soaring from $119.99 annually to $500 per year. However, a temporary discount of 40% is available for the first year. In Australia, the monthly fee has risen from a flat rate of $39.99 AUD (approximately $26 USD) for up to five users to $13.50 AUD per user.
For individual users, Canva Teams now costs $100 per person per year or $10 per month per person, with a minimum requirement of three users for a Teams plan. These rates, previously implemented for new customers earlier this year, are now being applied to existing users who were previously on lower-priced plans. Notably, these changes do not affect Canva’s Pro or Enterprise tiers.
A Canva spokesperson confirmed the new pricing structure to TechCrunch, explaining that the increase is related to the company’s expanding suite of generative AI tools, including the newly launched Magic Studio. The spokesperson emphasized that the original pricing reflected an earlier stage of the product and had remained unchanged for four years.
“Our original pricing reflected the early stage of this product and has remained unchanged for the last four years,” the spokesperson stated. “We’re now updating the price for customers on this older plan to reflect our expanded product experience.”
The announcement of these price increases has been met with criticism from users, who are dissatisfied with Canva’s approach to communication. Unlike previous updates, which were publicly disclosed, these changes were communicated solely via email.
The move marks a significant shift from Canva’s position as a cost-effective alternative to design software like Adobe’s, and may signal the company’s rapid growth and transition. Canva, which is preparing for an initial public offering (IPO), has also recently made strategic acquisitions, including U.K.-based Serif for approximately $380 million in March and generative AI image company Leonardo in August.
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