Online program manager: Difference between revisions

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{{Short description|Provider of products and services for online courses at educational institutions}}

{{Multiple issues|

{{Lead rewrite|date=April 2024}}

{{Tone|date=January 2024}}

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Online learning offers convenience. A student does not have to be on campus and can study when it suits them. The flexibility that comes with online education seems particularly well suited for life-long learning. <ref>{{cite web | last1=Wood | first1=Jonny. | title=These 3 charts show the global growth in online learning | url=https://www.weforum.org/agenda/2022/01/online-learning-courses-reskill-skills-gap/ |website=weforum.org | date=27 January 2002 | access-date=9 April 2024}}</ref> Over the past 15 years, online enrollments have grown substantially. Convenience and flexibility is not the only explanation for this rapid growth. Universities, facing budget shortfalls, have turned to '''Online Program Managers''', commonly known as OPMs to fund their activities.<ref>{{cite web | title="The Anatomy of an OPM and a $7.7B Market in 2025" | url=https://www.holoniq.com/notes/the-anatomy-of-an-opm-and-a-7-7b-market-in-2025|date=13 February 2019|access-date=9 April 2024}}</ref> OPMs provide bundled products and services to private and public educational institutions in exchange for a revenue sharing arrangement. Universities have come to rely on these services to recruit new students, design, develop, run online programs and more.<ref>{{cite journal | last1=Hamilton | first1=Laura | title=The For-Profit Side of Public U: University Contracts with Online Program Managers |journal= Socius: Sociological Research for a Dynamic World| url=https://doi.org/10.1177/23780231231214952https://doi.org/10.1177/23780231231214952 |date=2024| volume=10 | doi=10.1177/23780231231214952 |access-date=9 April 2024| doi-access=free }}</ref>

OPMsOnline areenrollments oftenin fundedhigher byeducation privatehave equitygrown orsubstantially, ventureespecially capitalafter asthe aglobal [[For-profitshutdown. higherConvenience educationand inflexibility is not the Unitedonly explanation States|for-profit enterprises]]this rapid growth. AUniversities, revenue-sharingfacing contractbudget shortfalls, have turned to '''Online Program Managers''', commonly known as OPMs to recruit students and build online programs.<ref>{{cite web | last1title=Hall"The |first1=Stephanie|Anatomy title=Yourof an OPM Isn'tand a Tech Platform$7.7B It'sMarket ain Marketing2025" Firm| url=https://tcfwww.orgholoniq.com/contentnotes/commentary/yourthe-anatomy-of-an-opm-isntand-a-tech7-platform7b-itsmarket-ain-predatory-marketing-firm/ |website=tcf.org 2025|date=2013 January 2023February 2019|access-date=9 April 2024 }}</ref> hasOPMs allowedprovide universitiesbundled toproducts enterand intoservices theto online education businessprivate and gainpublic marketeducational shareinstitutions withoutin theexchange needfor toa buildrevenue their ownsharing platformarrangement.<ref>{{cite webUniversities |last1=Pelletierhave |first1=Stephencome |title=Theto Evolutionrely ofon Onlinethese Programservices Managementto |url=https://unbound.upcea.edu/leadership-strategy/continuing-education/the-evolution-of-online-program-management/recruit |website=unbound.upcea.edunew |access-date=19students, Decemberdesign, 2020}}</ref>develop, Suchrun predatoryonline partnershipsprograms incentivise aggressive student recruitment (and revenue collection)more.<ref>{{cite journal | last1=Hamilton | first1=Laura | title=The For-Profit Side of Public U: University Contracts with Online Program Managers |journal= Socius: Sociological Research for a Dynamic World| url=https://doi.org/10.1177/23780231231214952https://doi.org/10.1177/23780231231214952 |date=2024| volume=10 | doi=10.1177/23780231231214952 |access-date=9 April 2024| doi-access=free }}</ref> while [[outsourcing|outsourcers]] core [[edtech]] capability in an instution.<ref name="hechingerreport">{{cite web |last1=Marcus |first1=Jon |title=More colleges and universities outsource services to for-profit companies |url=https://hechingerreport.org/more-colleges-and-universities-outsource-services-to-for-profit-companies/ |website=hechingerreport.org |date=8 January 2021 |publisher=Hechinger Report |access-date=15 July 2021}}</ref> Until recently, they have also been less subject to government scrutiny.<ref name="Inside Higher Education">{{cite web |last1=Knott |first1=Katherine |title=Oversight Coming for Online Program Providers |url=https://www.insidehighered.com/news/2023/02/16/education-department-review-rules-online-program-providers |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=21 February 2023}}</ref>

OPMs are often funded by private equity or venture capital as a [[For-profit higher education in the United States|for-profit enterprises]]. A revenue-sharing contract<ref>{{cite web | last1=Hall |first1=Stephanie| title=Your OPM Isn't a Tech Platform. It's a Marketing Firm| url=https://tcf.org/content/commentary/your-opm-isnt-a-tech-platform-its-a-predatory-marketing-firm/ |website=tcf.org |date=20 January 2023 |access-date=9 April 2024 }}</ref> has allowed universities to enter into the online education business and gain market share without the need to build their own platform.<ref>{{cite web |last1=Pelletier |first1=Stephen |title=The Evolution of Online Program Management |url=https://unbound.upcea.edu/leadership-strategy/continuing-education/the-evolution-of-online-program-management/ |website=unbound.upcea.edu |access-date=19 December 2020}}</ref> Such predatory partnerships incentivise aggressive student recruitment (and revenue collection)<ref>{{cite journal | last1=Hamilton | first1=Laura | title=The For-Profit Side of Public U: University Contracts with Online Program Managers |journal= Socius: Sociological Research for a Dynamic World| url=https://doi.org/10.1177/23780231231214952https://doi.org/10.1177/23780231231214952 |date=2024| volume=10 | doi=10.1177/23780231231214952 |access-date=9 April 2024| doi-access=free }}</ref> while [[outsourcing|outsourcers]] core [[edtech]] capability in an institution.<ref name="hechingerreport">{{cite web |last1=Marcus |first1=Jon |title=More colleges and universities outsource services to for-profit companies |url=https://hechingerreport.org/more-colleges-and-universities-outsource-services-to-for-profit-companies/ |website=hechingerreport.org |date=8 January 2021 |publisher=Hechinger Report |access-date=15 July 2021}}</ref><ref name="Inside Higher Education">{{cite web |last1=Knott |first1=Katherine |title=Oversight Coming for Online Program Providers |url=https://www.insidehighered.com/news/2023/02/16/education-department-review-rules-online-program-providers |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=21 February 2023}}</ref>

In the face of scrutiny from educational institutions and regulators and competition in the sector, edtech market analyst Phil Hill said in 2023 that the OPM business model was now "on life support."<ref>{{cite web |last1=Coffey |first1=Lauren |title=OPMs on 'Life Support' in Changing Online Marketplace |url=https://www.insidehighered.com/news/tech-innovation/2023/10/11/are-opms-life-support-some-experts-think-so |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=12 October 2023}}</ref>

==History==

In the 2010s, OPMs grew substantially as universities sawrecognized the financial benefitbenefits of students reaching students beyond their geographical area while recognisingacknowledging their lack of skills in creating, maintaining, and optimisingoptimizing online courses. Proponents of outsourcing from for-profit companies sayargue that it "helps universities save money and makes them more nimble and efficient." However, [[Moody's]] Dennis Gephardt, however, warned that "more and more are cutting closer to the academic core."<ref name="hechingerreport2">{{cite web |last1=Marcus |first1=Jon |title=More colleges and universities outsource services to for-profit companies |url=https://hechingerreport.org/more-colleges-and-universities-outsource-services-to-for-profit-companies/ |website=Hechinger Report |date=8 January 2021 |access-date=25 January 2021}}</ref>

[[For-profit colleges]] are the progenitors of online program managers.<ref>{{cite web |last1=Newton |first1=Derek |title=How Companies Profit Off Education at Nonprofit Schools |url=https://www.theatlantic.com/education/archive/2016/06/for-profit-companies-nonprofit-colleges/485930/ |website=www.theatlantic.com |date=7 June 2016 |publisher=The Atlantic |access-date=1 July 2021}}</ref> In 1973, San Jose University professor [[John Sperling]], created the Institute of Professional Development (IPD), a company servicing a few colleges. IPD was the predecessor to the [[University of Phoenix]].<ref>{{cite web |title=AN INTERVIEW: John Sperling |url=http://www.highereducation.org/crosstalk/ctbook/pdfbook/JohnSperlingInterviewBookLayout.pdf |archive-url=https://web.archive.org/web/20130405061159/http://www.highereducation.org/crosstalk/ctbook/pdfbook/JohnSperlingInterviewBookLayout.pdf |url-status=usurped |archive-date=April 5, 2013 |website=www.highereducation.org |publisher=Higher Education Policy Institute |access-date=12 July 2021}}</ref> Fueled by Wall Street investors, for-profit colleges gained increased market share until 2010–2011, but declined in strength afterwards.<ref>{{cite web |last1=Lederman |first1=Doug |title=The Incredible Shrinking Higher Ed Industry |url=https://www.insidehighered.com/news/2019/10/14/higher-ed-shrinks-number-colleges-falls-lowest-point-two-decades |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=15 July 2021}}</ref> OPMs increased in number and power during the decline of for-profit colleges, and they were expected to continue growing revenues for several more years.<ref name="hechingerreport"/> The [[COVID-19 pandemic]] accelerated the move of college courses to online format, a trend that is likely to continue.<ref>{{cite web |last1=Kim |first1=Joshua |title=11 Takeaways From the 2021 CHLOE Report |url=https://www.insidehighered.com/blogs/learning-innovation/11-takeaways-2021-chloe-report |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=15 July 2021}}</ref>

In 2018 and 2020, two former for-profit college companies, Kaplan Higher Education and [[Zovio]], became online program managers. In 2021, two massive open online course (MOOC) developers, [[Coursera]] and [[edX]], became part of the for-profit OPM business.<ref name="hechingerreport2"/>

===Scrutiny and Consolidation (2018-present)===

In 2018, Inside Higher Education published "A Tipping Point for OPM?" which stated that most experts thought a "shakeout" would be occurring among Online Program Managers.<ref>{{cite web |last1=McKenzie |first1=Lindsay |title=A Tipping Point for OPM |url=https://www.insidehighered.com/digital-learning/article/2018/06/04/shakeout-coming-online-program-management-companies |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=15 July 2021}}</ref> Kaplan Higher Education became the OPM for [[Purdue University Global]]. Kaplan had previously owned the school.

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In November 2023, Academic Partnerships acquired Wiley University Services for $150 million.<ref>{{cite web |last1=Coffey |first1=Lauren |title=Merger of Online Program Companies Suggests 'Reset' in the Market |url=https://www.insidehighered.com/news/tech-innovation/teaching-learning/2023/11/15/academic-partnerships-buys-wileys-online-business |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=16 December 2023}}</ref>

In May 2024, Minnesota was the first state to bar its public colleges from making tuition-share contracts with online program managers.<ref>{{cite web |last1=Bauer-Wolf |first1=Jeremy |title=OPM Watch: How Minnesota Became the First State to Restrict Tuition-Share Deals |url=https://www.newamerica.org/education-policy/edcentral/opm-watch-how-minnesota-became-the-first-state-to-restrict-tuition-share-deals/ |website=www.newamerica.org |publisher=New America |access-date=10 December 2024}}</ref>

In July 2024, 2U entered into [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy.<ref>{{Cite web |last=Post |last2=Share |last3=Post |last4=Print |last5=Email |title=How 2U’s bankruptcy shed light on the company and OPM market |url=https://www.highereddive.com/news/how-2us-bankruptcy-shed-light-company-opm-market/723102/ |access-date=2025-02-19 |website=Higher Ed Dive |language=en-US}}</ref>

==Operations==

According to the Hechinger Report, "OPMs market the programs, recruit students, counsel them through the admissions process, enrolenroll them, provide the software and tech support needed for the programs to function and even help instructors design online-friendly courses."<ref>{{cite web |last1=BERMAN |first1=JILLIAN |title=Spotlight swings to for-profit intermediaries that may be driving up the cost of online higher education |url=https://hechingerreport.org/spotlight-swings-to-for-profit-middlemen-that-may-be-driving-up-the-cost-of-online-higher-education/ |website=hechingerreport.org |date=19 September 2019 |publisher=Hechinger Report |access-date=1 July 2021}}</ref> In return, OPMs are entitled to portions of the revenue.

Marketing and advertising are the largest expenses for OPMs. 2U, for example, spends $300-$400 million in marketing and advertising in a single year, and 22 percent of all tuition costs go to "customer acquisition." <ref>{{cite web |last1=Kim |first1=Joshua |title=Digging Into the 2U Transparency Report |url=https://www.insidehighered.com/blogs/learning-innovation/digging-2u-transparency-report |website=/www.insidehighered.com |publisher=Inside Higher Education |access-date=3 August 2021}}</ref> Coursera spends more than one-third of its revenues on sales and marketing.<ref>{{cite web |title=Coursera, Inc 10Q |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1651562/000095017021001438/cour-20210630.htm |website=www.sec.gov |publisher=Securities and Exchange Commission |access-date=5 September 2021}}</ref>

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In 2021, Coursera described an emerging strategy called the "consumer flywheel": creating stackable content and credentials from leading brand universities.<ref>{{cite web |last1=Hill |first1=Phil |title=Coursera, 2U, and the Emerging Education Platform Market |url=https://philonedtech.com/coursera-2u-and-the-emerging-education-platform-market/ |website=philonedtech.com |date=6 August 2021 |publisher=Phil Hill |access-date=5 September 2021}}</ref>

The '''revenue sharing model''' has been increasingly questioned inside and outside the industry as online learning has matured, and colleges gain more skills in this area, with some seeking a fee-for-service arrangement rather than a revenue sharing model.<ref>{{Cite web|url=https://campustechnology.com/articles/2019/09/12/report-calls-online-program-managers-wolves-in-sheeps-clothing.aspx|title=Report Calls Online Program Managers 'Wolves in Sheep's Clothing'|last=|first=|date=12 September 2019|website=Campus Technology|archive-url=|archive-date=|access-date=17 November 2019}}</ref><ref>{{Cite web|url=https://www.insidehighered.com/digital-learning/article/2018/06/04/shakeout-coming-online-program-management-companies|title=A Tipping Point for OPM?|last=|first=|date=4 June 2018|website=Inside Higher Ed|archive-url=|archive-date=|access-date=17 November 2019}}</ref>

Both Phil Hill<ref>{{Cite web|last=Hill|first=Phil|date=2021-12-01|title=OPM Market Landscape and Dynamics: Fall 2021 updates|url=https://philonedtech.com/opm-market-landscape-and-dynamics-fall-2021-updates/|access-date=2022-02-24|website=PhilOnEdTech|language=en-US}}</ref> and HolonIQ<ref>{{Cite web|date=2019-09-09|title=OPM, meet OPX. New models and the $3.5B+ global online higher education services market|url=https://www.holoniq.com/notes/opm-meet-opx-new-models-driving-the-global-online-higher-education-market/|access-date=2022-02-24|website=HolonIQ|language=en-US}}</ref> have also marked the increase in the fee for service market as universities select unbundled services to supplement their internal capabilities. These services are part of the evolution in the OPM space, known as Online Program Enablement (OPE or OPX).

This evolution will most likely continue in the maturation of the hybrid learning market.<ref>{{Cite web|date=2022-01-24|title=EdTech Predictions for 2022|url=https://techround.co.uk/guides/edtech-predictions-for-2022/|access-date=2022-02-24|website=TechRound|language=en-GB}}</ref>

==See also==

*[[Educational technology]]

*[[EdTech]]

*[[For-profit higher education in the United States]]

*[[Massive open online course]]