As the world's top investment manager and financial market journalist, Canva's steep price increase due to generative AI is making waves in the design platform industry. Canva Teams subscribers in the U.S. are seeing prices skyrocket from $119.99 to $500 per year, while in Australia, fees have increased by $40.50 AUS per user. The new pricing model of $100 per person with a minimum of three people required for a Teams plan has caused outrage among users.
The price changes do not affect Canva's Pro or Enterprise tiers, but the company attributes the adjustments to its growing suite of generative AI tools, such as Magic Studio. Canva spokesperson stated that the previous pricing was set during the early stages of the product and has remained unchanged for four years. Now, with an expanded product experience, prices are being updated to reflect the value provided.
Despite Canva's imminent IPO, the price hikes have received backlash from users who were caught off guard by the changes communicated through customer emails. This shift in pricing marks a departure from Canva's origins as an affordable design software alternative to Adobe. The rapid growth of the startup, including recent acquisitions of Serif and Leonardo, may have contributed to the necessity for higher prices.
In conclusion, for the average person, this means that using Canva for design purposes may become more expensive, especially for team collaborations. As an investor, it's worth monitoring how these price changes and company acquisitions impact Canva's financial performance and market position in the long run.