Popular online graphic design platform Canva is facing a backlash from customers following a price hike of up to 300% for its Teams subscription.
What Is Canva Teams?
The subscription-based Canva Teams feature within the Canva platform (an alternative to image editing platforms like Adobe), allows multiple users to collaborate on designs, share projects, and manage permissions in one space. Canva Teams includes tools for managing permissions, setting brand guidelines, and streamlining workflows. It also includes premium features, depending on the subscription level chosen by the team.
Price Hike
Canva has just (significantly) increased its Teams subscription prices, with some users seeing a rise of over 300 per cent! For example, the price for a five-user plan jumped from $120 to $500 annually (from AUD $39.99 per month to around AUD $2,430 in Australia). Also, as well as in the US and Australia, the price hike has affected users in Canada, the UK, and Europe.
Although Canva Teams prices have been increased, it’s understood that Canva’s solo Pro prices will remain unchanged.
Discount
It appears Canva has tried to cushion the blow a little by saying it will apply a 40 per cent discount for the first 12 months. However, even with the discount applied, users will still be paying significantly more than before, i.e. if the original annual price was $120, users will pay at least 150 per cent more in the first year than their previous subscription fee.
Why?
Canva has attributed the price rises to reflect an expanded product experience / the added value gained from the addition of advanced AI tools such as Visual Suite, Magic Studio, and Brand Tools. Canva has also highlighted the fact that its Teams subscription prices have remained the same for the last four years.
Backlash
Not surprisingly, with many users choosing Canva as a lower priced alternative to Adobe, the significant price increase has prompted anger and, judging by customer comments, may have lowered the barriers to exit. Some examples of customer arguments against and comments about the price rise include:
– Many users say they didn’t ask for the new AI tools and are unlikely to use them and, therefore, don’t want to pay the higher prices for them.
– Some users suggesting that it may be better to keep the regular subscription (and price) and offer an addition premium plan that includes all the AI with the higher price (i.e. give users the option and the choice).
– Angry X/Twitter users making comments like, “Your AI features are not worth triple the price. We can use AI tools anywhere. I’ll be cancelling our company contract when it expires”, and “nobody wants to pay 3x the price for a crappy AI app that nobody asked for”.
– Users actively looking for alternatives, e.g., one Reddit user asks, “As someone that cancelled their subscription after hearing this, any recommendations for other easy to use graphic design software that works on Mac please?”
– Another Reddit user comments “Canva wasn’t even worth the price before the AI and 300% increase.”
What Are The Alternatives To Canva?
Adobe is widely considered the market leader in design platforms, particularly with its Adobe Creative Cloud suite so, for many users, it’s a case of trying to find a fast, affordable (and no subscription), easy-to-use alternative. Examples of such alternatives could include Affinity Suite, Pixlr, Kittl, Crello (now VistaCreate), Snappa, Desygner, Easil, and Microsoft Designer (the pricing for which is tied to Microsoft subscriptions).
Competition
As many users pointed out in comments about the price rise, they can get generative AI tools capable of design elsewhere (often for free) when they need them. Also, Canva is likely facing competitive pressure from all manner of platforms now incorporating advanced AI tools, e.g., Adobe (with Firefly AI), and emerging AI-driven design platforms such as Kittl and Pixlr. These competitors have been investing in AI to streamline design workflows and enhance user capabilities, all of which may have created the competitive pressure that contributed to Canva’s integration of its own AI features (Magic Studio and Visual Suite). Also, Canva’s price rise may also be seen as simply aligning with its strategy to position itself as an AI-driven, premium design tool.
What Does This Mean For Your Business?
The recent price hike by Canva is likely to have significant ripple effects across its user base and the broader market for graphic design tools. For users, particularly small businesses and freelancers who chose Canva as a cost-effective alternative to Adobe, the steep increase may prompt reconsideration of their subscription. Many users feel frustrated that they are now paying for advanced AI features they neither asked for nor need. This backlash could see a migration toward other affordable design platforms, especially since competitors offer AI-driven design tools at a lower cost or even for free.
For Canva, the price hike is part of an apparently bold strategy to position itself as a premium, AI-powered design tool. While it allows the company to highlight new features like Magic Studio and Visual Suite, this move also risks alienating its core user base. Canva now appears to be facing a delicate balancing act – justifying its higher pricing through enhanced features while addressing user dissatisfaction. With many users seeking alternatives, Canva’s competitors, such as Affinity, and Pixlr, could see an opportunity to capture market share, especially if they continue offering cost-effective, AI-enhanced tools without significant price jumps.
The design platform market is evolving rapidly, with AI fundamentally reshaping how design tools are developed and used. Canva’s shift toward AI tools reflects this trend, but it also highlights the growing pressure on design platforms to keep up with these technological advances. For businesses, this means staying alert to the changing landscape, where innovation in AI is driving not only new functionalities but also pricing strategies. The near future could see more platforms adopting similar AI-driven models, forcing users to weigh the benefits of advanced tools against rising costs.