Canva, the popular design platform, has recently announced a significant price increase for some of its customers. The company attributes this move, at least partially, to its growing suite of generative AI tools, including Magic Studio. This increase in pricing has affected Canva Teams subscribers on older pricing plans in the U.S. and Australia. The pricing for a five-person plan in the U.S. has skyrocketed from $119.99 per year to $500 per year, with a 40% discount only for the first 12 months. In Australia, the monthly fee for up to five users has risen from a flat $39.99 AUS to $13.50 AUS per user.
Existing Canva Teams customers who were on lower pricing plans have been caught off guard by the sudden and significant price spike. These customers are now faced with individual user prices of $100 per person or $10 a month per person, with a minimum of three people required for a Teams plan. While the new pricing structure was silently implemented earlier this year for new customers, existing customers are now feeling the brunt of the change.
Unsurprisingly, Canva’s price hikes have not been well received by its user base. Many customers were particularly upset by the way the changes were communicated, through customer emails rather than a public announcement. This approach deviates from Canva’s previous transparency with pricing adjustments. The sudden increase in prices is a departure from Canva’s original positioning as an affordable alternative to design software giants like Adobe.
In response to the backlash, a Canva spokesperson defended the price adjustments, stating that the original pricing plans were established during the early stages of the product and had remained the same for four years. The spokesperson emphasized that the new pricing structure is necessary to reflect the expanded product experience that Canva now offers. The acquisition of Serif and Leonardo earlier this year suggests that Canva is rapidly expanding its offerings and services, leading to the need for pricing realignment.
The steep price increase by Canva has undoubtedly created a stir among its customer base. While the integration of generative AI tools may justify the shift in pricing, the lack of transparency and communication has left many customers feeling blindsided. It remains to be seen how Canva will navigate this delicate situation and whether it will have a lasting impact on its user loyalty and overall market perception.
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