Decreased higher ed market share signals shift in online program management
As more colleges and universities add online courses to their catalogs, the market share for online program managers (OPM) has begun feeling the effect.
At the end of July, 2U, an OPM, issued its latest report on earnings, which were well below expectations. The announcement led to an almost immediate 25% drop in the company’s stock price, although it soon rebounded. It was enough for CEO and co-founder Christopher “Chip” Paucek to announce a change of course, recognizing that the online education market is in transition. As part of 2U’s strategy, he noted plans to reduce new graduate program starts by at least half over the next few years and lower enrollment expectations. He said the change was the result of seeing what was ahead and that other OPM vendors would face similar challenges.
OPM market players
About 1,460 higher ed institutions serve some students taking only online classes, and 525 of those schools partner with OPMs to provide them, according to Tyton Partners, an investment banking and strategy consultancy. In addition to 2U, major OPMs include Blackboard, Online Education Services, Wiley Education Services, iDesignEDU, Pearson and Six Red Marbles. OPM services may include market research, course design, student recruitment and retention programs, and platform management.