Canva AI Function Price Hike Prompts Users to Consider Switching to Adobe

2024-09-04

According to reports, design platform Canva plans to significantly increase its subscription fees next year, especially for its business-oriented Canva Teams subscription service. Some global customers may face price increases of up to 300%. The company explains that this adjustment is due to the added value of the "expanded product experience" brought by the introduction of generative artificial intelligence tools. In the United States, the annual subscription fee for some Canva Teams users will increase from $120 for every five users to $500. However, there will be a 40% discount in the first 12 months, reducing it to $300. In Australia, Information Age points out that the fixed monthly cost for five users was originally AUD 39.99 (approximately $26), but it will now be AUD 40.50 per user per month. This means that the annual fee for a team of five users will increase from AUD 480 (approximately $323) to AUD 2430 (approximately $1636). These accounts previously enjoyed lower prices that Canva no longer offers. In April of this year, Canva quietly changed the pricing structure for new Teams subscribers to $10 per user per month, with a minimum requirement of three users. Now, Canva's communications manager, Louisa Green, states that existing users will also transition to this new billing structure in September. Canva's product offerings have significantly expanded in recent years, including the launch of new visual kits and services like Magic Studio. Additionally, the company has introduced a range of generative AI features, such as the Magic Media text-to-image generator and Magic Expand background extension tool, transforming the platform from a professional design and marketing tool to a more comprehensive office space application. Although Canva has previously announced similar price increases publicly, this time the price hike seems to be primarily communicated through email notifications to customers. Pro and Enterprise-level subscription users appear to be unaffected by this change. This high-price strategy marks a significant shift for Canva, which was once seen as a more user-friendly and cost-effective alternative to the expensive graphic design software offered by Adobe. Online Canva users have expressed dissatisfaction with this price increase, with some even claiming to cancel their subscriptions and switch to Adobe's applications. These substantial price increases come after Canva's acquisition of the company behind the Affinity creative software suite, reportedly for hundreds of millions of pounds, and it is expected that Canva may go public in the United States in 2026.