Moody's: Competition, consolidation shape online education market

educationdive | April 11, 2019

Competition is heating up for colleges online, and new market entrants are gaining share, according to a new analyst report from Moody's Investors Service, which calls the expansion "a credit positive" for higher education. Online-only enrollment grew 38% from 2012 to 2017, and it will continue to increase as "a key enrollment strategy" for institutions, the authors write. However, not all colleges will take this route, and it is "unlikely to replace" on-campus education. Still, the growth online comes as overall higher ed enrollment has leveled off. Critical to colleges' success online is differentiation, which can include price, delivery model, perceived value and faculty service levels. Public universities' large online enrollment, low tuition and access-oriented mission will help them maintain market share. The Moody's analysts, led by assistant vice president Pranav Sharma, are cautious about colleges seeing online programs as a panacea for their financial woes. "The capital investment, expertise and institutional commitment required to develop online education at scale are often too great to make this a worthwhile strategy for many institutions," they write, noting that barriers to entry online are low, but the bar for success is high

Spotlight

During this masterclass, Professor Max Louwerse will update you on the most recent, innovative applications of virtual, mixed and augmented reality. In addition to this, you will get an introduction into measuring behavior in virtual reality environments. Of course, you can best understand the possibilities of virtual reality by trying it out yourself. Therefore, you will experience first-hand how close it is to the real world by visiting the DAF Technology Lab on campus and even by building simulations yourself!

Spotlight

During this masterclass, Professor Max Louwerse will update you on the most recent, innovative applications of virtual, mixed and augmented reality. In addition to this, you will get an introduction into measuring behavior in virtual reality environments. Of course, you can best understand the possibilities of virtual reality by trying it out yourself. Therefore, you will experience first-hand how close it is to the real world by visiting the DAF Technology Lab on campus and even by building simulations yourself!

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