Canva, a popular design platform, recently announced a significant increase in prices for some of its customers. This move has sparked controversy and raised concerns among users who have been loyal to the platform for years. In the United States, Canva Teams subscribers on older pricing plans have seen the cost of a five-person plan skyrocket from $119.99 per year to $500 per year, with a 40% discount for the first 12 months. Similarly, in Australia, the flat fee of $39.99 AUS per month for up to five users has been raised to $13.50 AUS per user.
One of the reasons cited by Canva for this sudden price increase is the integration of generative AI tools, such as Magic Studio, into their platform. The company claims that the development and implementation of these advanced tools have necessitated the adjustment in pricing to reflect the enhanced product experience. However, many users are skeptical of this explanation and see it as a convenient excuse to justify the price hike.
Unsurprisingly, Canva’s price hikes have not been well-received by its user base. Many customers have expressed dismay at the lack of transparency surrounding the changes, with some noting that they were informed via email rather than through a public announcement. This departure from Canva’s usual communication practices has only added fuel to the fire and further alienated loyal users.
The increase in pricing marks a significant shift in Canva’s identity as an affordable design software alternative to industry giants like Adobe. The platform, which initially gained popularity for its user-friendly interface and budget-friendly subscription plans, is now facing backlash for veering off course. The rapid growth and expansion of the company, highlighted by recent acquisitions, may have inadvertently led to these controversial changes in pricing.
Canva’s decision to raise prices for certain customers has created a stir within the design community. While the integration of generative AI tools may have played a role in this move, the lack of transparency and poor communication have only served to exacerbate the situation. As Canva prepares for an IPO, it remains to be seen how the company will address the concerns of its users and regain their trust in the wake of these price hikes.