Canva, the popular design platform, has recently implemented significant price hikes for its Teams product, sparking widespread reaction from its user base. The company attributes these increases to the growing integration of generative AI tools into its platform. While these changes primarily affect Teams subscribers, they mark a notable shift in Canva’s pricing strategy, particularly as the company prepares for a potential IPO.
In the United States, Canva Teams subscribers on older pricing plans are experiencing a substantial increase. For instance, the price of a five-person plan has surged from $119.99 per year to a staggering $500 per year. To soften the blow, Canva is offering a 40% discount for the first 12 months, but this still represents a significant hike. In Australia, the changes are equally dramatic, with the flat fee of $39.99 AUD per month for up to five users being replaced by a per-user fee of $13.50 AUD.
The new pricing model breaks down to $100 per person annually, or $10 per month per user, with a minimum requirement of three users for a Teams plan. While these changes were quietly rolled out for new customers earlier this year, existing subscribers are now facing the same adjustments, a move that has not been well-received by the Canva community.
Impact on Pro and Enterprise Users
Interestingly, these price changes do not extend to Canva’s Pro or Enterprise tiers. The focus remains on the Teams product, which is often used by small to medium-sized businesses and collaborative teams who relied on Canva’s previously lower costs as a more budget-friendly option compared to other design tools like Adobe.
In a statement provided to TechCrunch, Canva confirmed the new pricing and justified the increases by pointing to its expanding suite of generative AI tools, including the recently introduced Magic Studio. The company also highlighted that many customers had been enjoying older, lower prices that no longer align with the current, more advanced offerings of the platform.
“Our original pricing reflected the early stage of this product and has remained unchanged for the last four years,” a Canva spokesperson explained. “We’re now updating the price for customers on this older plan to reflect our expanded product experience.”
User Reaction and Communication Criticism
As expected, the price hikes have been met with frustration from many users, particularly those who had become accustomed to Canva’s affordability. Adding to the discontent is the way Canva communicated these changes—through customer emails rather than a public announcement, which some users found lacking in transparency.
Canva’s decision to raise prices could be seen as a reflection of the company’s rapid growth and its ambition to position itself as a leader in the design software market. The recent acquisitions of U.K.-based graphic design software firm Serif for approximately $380 million and generative AI image company Leonardo in August suggest that Canva is expanding its capabilities at a fast pace. However, this growth may also be pushing the platform away from its roots as an affordable alternative to industry giants like Adobe.
Canva’s recent price increases for its Teams product highlight the company’s evolving business model as it integrates more advanced tools and prepares for future developments, including a potential IPO. While these changes aim to align prices with the expanded features offered by the platform, they have also sparked concern among users who relied on Canva’s cost-effectiveness. As Canva continues to grow and innovate, it will need to balance these advancements with the expectations and loyalty of its user base.
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