Canva says its AI features are worth the 300 percent price increase
Canva says its AI features are worth the 300 percent price increase
Canva says its AI features are worth the 300 percent price increase
The price of some Canva subscriptions are set to skyrocket next year following the company’s aggressive rollout of generative AI features. Global customers for Canva Teams — a business-orientated subscription that supports adding multiple users — can expect prices to increase by just over 300 percent in some instances. Canva says the increase is justified due to the “expanded product experience” and value that generative AI tools have added to the platform.
In the US, some Canva Teams users are reporting subscription increases from $120 per year for up to five users, to an eye-watering $500 per year. A 40 percent discount will be applied to bring that down to $300 for the first 12 months. In Australia, the flat $39.99 AUS (about $26 USD) per month fee for five users is switching to $13.50 AUS (about $9 USD) for each user. That means a team of five will pay at least 68 percent more, not withstanding any other discounts.
They are probably failing to get enough users, so they will attempt to squeeze as much money from their existing users as they can before they go under.
I just assumed the VC money dried up.
All post-COVID tech companies in a nutshell.
AI seems to be getting used as the latest way to keep VCs still interested in a world of higher interest rates and otherwise tighter corporate spending.
It was the cheap fed money that allowed VC to speculate for so long.
That's too bad since they recently purchased the excellent Affinity suite... which I originally bought for a single lifetime price, but they're switching to a subscription model. So my favorite editing suite might get ruined two ways.
Are they? When they bought it they explicitly promised that they would not change the licensing. And no one believed them. Affinity was the only true competitor to Adobe products with equivalent functionality for a reasonable one-off payment instead of an extortionate subscription. I was so happy to find it - software that actually feels good to buy and use, Of course they're going to ruin it.
Step 3 of enshittification has begun
Or they are gearing up to sell, so they pull this stunt to make their subscription numbers look better, before the cancellations start rolling in.
The article’s author seems to think this is an IPO play. Their revenue would spike over 2025 and would inflate the growth metrics for a 2026 IPO.