Canva Increases Prices for Teams Product

The popular design platform has significantly raised prices for some subscribers, citing the expansion of their generative AI tools.

This adjustment affects customers on older pricing plans, leading to considerable price hikes in various regions, including the U.S. and Australia.

Price Changes in Different Regions

In the United States, some subscribers on legacy pricing plans will see a jump from $119.99 to $500 annually for a five-person plan. A 40% discount will apply for the first year.

In Australia, the flat $39.99 AUS monthly fee for up to five users is now $13.50 AUS per user. These changes reflect a shift in the company’s pricing approach.

Individually, prices have been adjusted to $100 per person annually or $10 monthly, with a minimum requirement of three users per plan.

Reason Behind the Price Hike

A spokesperson confirmed these new price points to TechCrunch, attributing them to the company’s expanding suite of generative AI tools, including Magic Studio.

The spokesperson emphasized that some customers had been benefiting from lower prices, which were initially set for the product’s early stages and haven’t changed for four years.

“We’re now updating the price for customers on this older plan to reflect our expanded product experience,” the spokesperson added.

customer reactions

However, the price hikes have not been well received. Users have expressed dissatisfaction, particularly about the changes being communicated through customer emails rather than a public announcement.

This marks a departure from the design platform’s original appeal as an affordable alternative to more expensive design software.

User reactions on social media highlight the frustration and backlash. “Canva price increase is one of the biggest increases I have ever seen YoY,” tweeted Will Sanders.

Comparison with Competitors

Canva’s pricing adjustments position it differently in the market against competitors like Adobe.

The aggressive price hikes come at a time when the design platform is preparing for an IPO, raising concerns about its strategic direction.

This move could signal a shift in the company’s market positioning, potentially alienating its base of price-sensitive customers.

Acquisitions and Rapid Growth

The company has been on a rapid growth trajectory, acquiring the U.K.-based graphic design firm for ~$380 million in March.

In August, the design platform acquired generative AI image company Leonardo, further expanding its capabilities.

These acquisitions have necessitated higher revenue to sustain the company’s aggressive expansion strategy.

Impact on Long-Term Users

Long-term users who have been on legacy pricing plans are the most affected by these changes.

Many users are faced with the choice of either accepting the new prices or seeking alternative design software solutions.

This has led to concerns about customer loyalty and retention as the company moves forward.

In summary, the recent price increases signify a major shift for long-term users and raise questions about the company’s future strategy.

While the addition of advanced AI tools is a notable enhancement, only time will tell how users will adapt to these new changes.

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Emmanuel Kesse

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