Canva hikes subscription prices by 300% for new AI features

Canva hikes subscription prices by 300% for new AI features
04 Sep 2024

Canva, the popular graphic design platform, has announced a significant price increase for its Teams subscriptions.

The company is attributing this hike to the integration of advanced generative AI features into its platform.

The new pricing will be implemented next year and could see costs rise by over 300% in certain cases.

This change primarily affects Canva Teams, a business-focused subscription that allows multiple users.

Impact of price increase on global customers
Pricing details

In the US, some Canva Teams subscribers have reported their annual subscription costs rising from $120 for up to five users, to a staggering $500.

However, a 40% discount will be applied during the first year, reducing the cost to $300.

In Australia, the monthly fee of AUD39.99 ($26) for five users is being replaced with a per-user charge of AUD40.50 ($27).

This means an annual cost increase from AUD480 ($323) to AUD2,430 ($1,636) for a team of five.

Canva's justification for price increase
Company stance

Canva's communications lead, Louisa Green, stated that the price adjustment is due to the "expanded product experience" and value added by the new AI tools.

She explained that existing users are being transitioned to this pricing structure in September "to reflect the current price of the plan and the value of our expanded product experience."

Green also highlighted significant growth in Canva's product range with launches like Visual Suite and Magic Studio.

Canva's AI features and user response
AI integration

Over the past few years, Canva has introduced several generative AI features like Magic Media text-to-image generator and Magic Expand background extension tool.

These additions have transformed the platform into a more comprehensive workspace.

However, the price increase has been met with criticism online, with some users threatening to cancel their subscriptions and switch to Adobe applications.

Canva's shift toward enterprise and AI partnerships
Strategic shift

Canva has also launched a significant enterprise-focused suite, marking a departure from its roots as a platform for casual designers and independent marketers.

The company's AI features are powered by large language models (LLMs) developed in-house and in collaboration with leading AI firms like OpenAI and Google.

Last year, Canva introduced a developer platform and released over 100 apps in the Canva app marketplace.

Canva's measures to ensure user data safety
Data protection

As it attracts more enterprise clients, Canva has implemented measures to safeguard user data and shield users from legal issues related to plagiarism or copyright infringement.

The company has developed a tool called Canva Shield, which offers indemnification for select enterprise clients for all AI outputs at no extra charge.

New privacy settings have also been introduced for creators to protect their assets.