Canva Faces Backlash Over Subscription Price Hikes Up to 4x

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Key Takeaways

  • Price hikes will affect Canva Teams subscriptions but reportedly not Pro and Enterprise tiers.
  • Some customers could see their subscription prices rise by over 300%.
  • Canva says this increase is due to the value generative AI tools have added to the platform.

Some Canva customers face huge price hikes as the company raises its subscription prices starting this month.

Canva Teams, a business subscription that supports multiple users, is the most heavily impacted tier, with Pro and Enterprise subscribers reportedly unaffected.

Some Canva Teams users in the US have seen their subscription prices rise from $120 a year to $500 a year for up to five users. For the first 12 months, a 40% discount will apply, taking the total cost down to $300 for the year, still a substantial increase.

Things are worse in Australia, where, according to Information Age, the fee of around $26 a month for five users will increase to around $27 a month for each user. That takes the total price for a team of five to around $1,636 (originally around $323) per year.

Canva Customers Unhappy With Price Hikes

There has understandably been a backlash to these price hikes on social media, with customers unhappy that Canva has made such huge changes to its subscriptions. Many say they will cancel and move to Adobe, Canva’s main competitor.

It also seems strange that Canva hasn’t announced these subscription price rises publicly, as it has done in the past. This time, the company communicated changes to existing customers privately via email.

This isn’t the first time the company has made silent changes to its offerings, though. Back in April, Canva switched up its deal for new Teams subscribers to $10 a month for each user. Existing customers will reportedly be transitioned onto this plan starting in September.

Price Hikes Likely Linked to Generative AI Tools

Canva blames the price hikes on the added value that new generative AI tools bring to the platform and its “expanded product experience.” Meanwhile, user backlash seems to suggest many don’t use the platform’s generative AI tools at all.

The company’s suite of generative AI tools has expanded over the last few years, with tools such as Magic Expand and Magic Media text-to-image generator opening up the software to more general users rather than design professionals.

Whether this latest round of price hikes will see a plethora of users jump ship in favor of graphic design software from Adobe remains to be seen. Still, the move takes Canva far from its humble beginnings as an affordable alternative to its main competitor.