Is the AI Worth the Cost of a Canva Subscription?
Design software service Canva recently announced a significant increase in membership prices for its users worldwide. Some U.S. users have reported that the cost of a five-person team subscription has gone up from $120 per year to $500 per year. However, Canva has assured users that they will receive a 40% discount for the first year, bringing the cost down to $300, which is still a $180 increase.
Despite the steep price hike, Canva, valued at $26 billion with 185 million global monthly users, and potentially preparing to go public, is justifying the increase by highlighting its new AI features.
Canva’s suite of products has expanded significantly in the last few years with the introduction of new offerings like the Visual Suite and Magic Studio. The Visual Suite includes features like AI-powered writing, creating slideshows from a prompt, and turning documents into websites. On the other hand, Magic Studio uses AI to transform written concepts into engaging social posts, videos, and slideshows.
Customer Backlash and Company Developments
While the new AI features have garnered some praise, many subscribers have taken to social media to express frustration over the price increase. Small businesses, in particular, may feel the impact of this change the most.
Despite the backlash, Canva has renewed a multi-year partnership to provide customers with access to Getty images and videos. Additionally, the company acquired AI startup Leonardo.ai to enhance its AI offerings. The full Leonardo.ai team of 120 people has joined Canva’s already substantial workforce of 4,000 employees following the acquisition.
The Importance of AI in Business
Canva CEO Melanie Perkins emphasized the role of AI in streamlining the design process, stating that each AI feature introduced into Canva helps reduce the time it takes to turn an idea into a finished product.
However, incorporating AI into a business comes with a cost, both financially and environmentally. Developing AI models currently costs over $100 million, with the expense expected to increase in the future. Additionally, AI generation consumes significantly more energy compared to traditional processes, posing environmental challenges.
Conclusion
While the benefits of AI in design software like Canva are clear, the increase in subscription prices raises questions about the trade-off between innovation and affordability. As Canva continues to invest in AI technology, users must weigh the value of these features against the higher costs associated with them.