Canva to increase prices by 300%

Canva has revealed that it will raise the price of Teams subscription by a huge margin since it will be coming with AI capabilities. Find out more about the updates and adjustments to improve the user experience.

Introduction:

The users of Canva design software have been made aware that prices are set to rise sharply. From next year, Canva Teams will have a new subscription fee that is over 300 % of what the users are currently paying. To this end, the increase, according to the company, can be attributed to newly integrated generative AI features. But do we get a justification for such a price increase? Let’s explore the details.

What is changing with Canvas Pricing?

Canva Teams is a much more professional or business version that has a subscription model that supports multiple users. The new pricing structure sees a dramatic increase: The new pricing structure sees a dramatic increase:

• US Customers: Previously it was $120 a year for up to five users and now it costs $500 a year. The price, with 40 percent off, is 300$ for the first year of subscription.
• Australian Customers: The fee is shifting from flat $39. It was from 99 AUD per month for five users to $40. AU is $50 per month per user. In the case of a team of five, it will be from AUD 480 to AUD 2,430 per annum.

These changes represent quite a shift from the initial Canva pricing structure that provided lower costs to other graphic design software.

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Why the Price Increase?

There is no doubt that Canva has added several tools with the help of Artificial Intelligence to justify this increase in prices. Louisa Green, the communications lead at Canva said that the idea of product experience has grown enormously for the firm. Introduced as new functions, the possibility to get a picture from the text in the Media section – Magic Media text-to-image generator, and the Magic Expand background extension tool have turned Canva into a multifunctional workspace for graphic designers and marketers.

Green also said it is increasing prices for existing users to match the value added by the additional product experience services. She stressed that such changes are relevant as Canva offers more products, for instance, the Visual Suite and Magic Studio.

How Are Users Reacting?

Users’ responses are mixed. The bible has those who are excited because of the new features of the software and those who feel that it is okay to be charged more for the improved software. Most of the consumers are complaining that they did not expect such a steep hike in the price and those who were used to the guaranteed and lower rates are also having a bad time.

The imposition of the higher price has also caused some Canva users to look for other platforms to use instead of Canva. It includes a number of them who have declared that they are going to cancel their subscriptions and start utilizing applications offered by Adobe, as the new prices are considered a betrayal of Canva which has been initially oriented to offer affordable solutions.

The Bigger Picture – About the Future Development of Canva:

Thus, the increase in the price of Canva is hinged on other typical milestones for the company. Affinity is a set of creative software that was owned by a company that was bought by Canva for several hundred million British pounds. Moreover, Canva is planning to go for its public market debut in the US by 2026. Such undertakings indicate that Canva is seeking to take a leading position in the design application solutions market, potentially competing with leaders such as Adobe.

Conclusion:

A significant percentage increase in the cost of Canva Team plans can be attributed to the firm’s move towards a pro-type of business model. Canva has stated that the new features make the upgrade worthwhile, but users have split feelings on that. Thus, it is only a matter of time before we determine whether Canva’s audience will stay with new opportunities and prices or look for other solutions.

Image Credit: Canva