Canva, the widely used design platform, has recently raised prices for its Teams product, marking a significant shift in the company’s pricing model. The move has been attributed to the integration of generative AI into its suite of tools. This decision, however, has not been well received by the users, who have expressed their dissatisfaction through various social media platforms.
The Price Hike
US and Australia Pricing Changes
For US-based subscribers on older pricing plans, the cost of a five-person Canva Teams plan has seen a substantial increase from $119.99 per year to $500 per year, with a promotional discount of 40% for the first year. In Australia, the monthly fee for up to five users has escalated from $39.99 to $13.50 per user.
Individual User Pricing
For individual users, the price for Canva Teams has now risen to $100 per person, or $10 per month per person, with a minimum requirement of three people for a Teams plan. This change, which was quietly implemented earlier this year for new customers, has now been extended to existing customers who were previously on lower pricing plans.
Non-Affected Tiers
It’s important to note that the price increase does not apply to Canva’s Pro and Enterprise tiers.
Reasons Behind the Price Hike
Canva’s spokesperson acknowledged the new pricing structure and pointed to the company’s expanding suite of generative AI tools, including Magic Studio, as a contributing factor. The spokesperson also mentioned that some customers had been on pricing plans that the company no longer offers, due to changes made earlier this year for new customers.
Our original pricing reflected the early stage of this product and has remained unchanged for the last four years, the spokesperson said. We’re now updating the price for customers on this older plan to reflect our expanded product experience.
User Reaction
The price hike has not been well received by Canva’s user base. Users, particularly those in the US, have expressed their dissatisfaction through various social media platforms, with some even suggesting that the price increase is one of the biggest they’ve seen in a year-over-year comparison.
Communication Concerns
Users have criticized Canva for communicating the price changes through customer emails, rather than publicly, as the company has traditionally done. This shift in communication strategy has further fueled user discontent.
Canva’s Growth and Expansion
As Canva prepares for an Initial Public Offering (IPO), the price hike may also reflect the company’s rapid growth and the need to accommodate its expanding suite of tools, including the recent acquisitions of U.K.-based graphic design software firm Serif for approximately $380 million and generative AI image company Leonardo, aimed at boosting its AI capabilities.
Conclusion
Canva’s decision to increase prices for its Teams product, while emphasizing the integration of generative AI, has sparked a significant debate within its user community. While the move might be seen as a strategic response to the company’s growing ambitions and the advancements in AI technology, it remains to be seen how this will affect Canva’s market position and user satisfaction in the long run.
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