Canva Faces Criticism Over Sharp Subscription Price Increases
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Canva customers are facing steep price increases as the company raises its subscription fees this month. The Canva Teams plan, designed for businesses with multiple users, is the most affected, while Pro and Enterprise users reportedly won't see any changes.
In the U.S., some Canva Teams subscribers have seen their yearly fees jump from $120 to $500 for up to five users. Although Canva is offering a 40% discount for the first year, bringing the price down to $300, it's still a significant increase.
The situation is even worse in Australia, where the monthly fee for five users will rise from around $26 to approximately $27 per user, bringing the total annual cost to about $1,636—up from around $323.
Customer Reactions to the Price Increases
Unsurprisingly, these price hikes have sparked a backlash on social media, with many customers expressing their frustration. Some are even considering switching to Adobe, Canva's main competitor.
What’s more, Canva hasn’t publicly announced these price changes as it has in the past. Instead, the company quietly informed existing customers via email. This isn’t the first time Canva has made changes without much fanfare. Earlier in April, they adjusted their Teams plan to $10 per month per user, and existing customers are expected to be moved to this new pricing in September.
The Role of Generative AI in the Price Hike
Canva justifies the price increase by pointing to the value that its new generative AI tools bring to the platform. However, many users seem unimpressed, as they don’t frequently use these tools.
Over the years, Canva has expanded its suite of generative AI tools, including features like Magic Expand and the Magic Media text-to-image generator, which aim to make the software more accessible to everyday users, not just design professionals.
It remains to be seen whether these price hikes will drive a significant number of users to switch to Adobe’s graphic design software, but it's clear that Canva is moving away from its roots as a budget-friendly alternative to its main rival.
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