Canva Increases Prices Due to Generative AI Tools
Canva, the popular design platform, has announced steep price increases for some of its customers. The company attributes this move in part to the development and implementation of generative AI tools.
Customers in the U.S. who are subscribed to Canva Teams on older pricing plans have experienced a significant price hike. For instance, the cost of a five-person plan has jumped from $119.99 per year to $500 per year, with a 40% discount for the first 12 months. Similarly, in Australia, the flat monthly fee for up to five users has increased from $39.99 AUS to $13.50 AUS per user.
Individually, Canva Teams prices now stand at $100 per person, or $10 per month per person, with a minimum of three users required for a Teams plan. While these price adjustments were quietly introduced earlier this year for new customers, existing customers who were paying lower prices are now being affected.
It is important to note that these price changes do not apply to Canva’s Pro or Enterprise tiers.
In a statement to JS, a Canva spokesperson justified the new price points by highlighting the company’s expanding suite of generative AI tools, such as Magic Studio. They also explained that some customers were locked into lower prices that Canva no longer offers, leading to the need for these adjustments.
Canva’s spokesperson stated, “Our original pricing reflected the early stage of this product and has remained unchanged for the last four years. We’re now updating the price for customers on this older plan to reflect our expanded product experience.”
The price increases have not been well-received by users, especially considering that Canva communicated the changes through customer emails rather than publicly announcing them. This shift in pricing marks a departure from Canva’s reputation as an affordable alternative to design software like Adobe’s.
These changes may also signal the challenges of rapid growth for the startup. In recent months, Canva has made significant acquisitions, including U.K.-based graphic design software firm Serif and generative AI image company Leonardo.
Correction: A previous version of this article misstated the Canva Teams price for Australian customers. It is $13.50 per user per month, with a three-user minimum.
