Online program manager

In the 2010s, OPMs grew substantially as universities recognized the financial benefits of reaching students beyond their geographical area while acknowledging their lack of skills in creating, maintaining, and optimizing online courses. Proponents of outsourcing from for-profit companies argue that it "helps universities save money and makes them more nimble and efficient." However, Moody's Dennis Gephardt warned that "more and more are cutting closer to the academic core."{{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}}

For-profit colleges are the progenitors of online program managers.{{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}} 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.{{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}} Fueled by Wall Street investors, for-profit colleges gained increased market share until 2010–2011, but declined in strength afterwards.{{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}} 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. The COVID-19 pandemic accelerated the move of college courses to online format, a trend that is likely to continue.{{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}}

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.

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.{{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}} Kaplan Higher Education became the OPM for Purdue University Global. Kaplan had previously owned the school.

In 2019, 2U shares dropped more than 50 percent when it lowered its growth expectations.{{cite web |last1=Millward |first1=Wade Tyler |title=2U Stock Tumbles 54% After Company Lowers Growth Expectations for 2019 |url=https://www.edsurge.com/news/2019-07-31-2u-stock-tumbles-after-online-degree-company-lowers-growth-expectations-for-2019 |website=edsurge.com |date=31 July 2019 |access-date=August 5, 2019}}The Century Foundation found that many universities reached bad deals with OPMs and called for the institutions to take more control over their online efforts.{{cite web |last1=HALL |first1=STEPHANIE |last2=DUDLEY |first2=TAELA |title=Dear Colleges: Take Control of Your Online Courses |url=https://tcf.org/content/report/dear-colleges-take-control-online-courses/ |website=tcf.org |date=12 September 2019 |publisher=The Century Foundation |access-date=6 August 2021}} The Century Foundation characterised OPMs as 'predatory for-profit actors masquerading' as public universities."{{cite web |last1=Busta |first1=Halie |title=A look inside public universities' OPM contracts |url=https://www.highereddive.com/news/a-look-inside-public-universities-opm-contracts/562763/ |website=www.highereddive.com |publisher=Higher Ed Dive |access-date=30 November 2021}} MOOCs were also criticised for their low completion rates, typically about 3 percent.{{cite web |last1=Lederman |first1=Doug |title=Why MOOCs Didn't Work, in 3 Data Points |url=https://www.insidehighered.com/digital-learning/article/2019/01/16/study-offers-data-show-moocs-didnt-achieve-their-goals |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=5 September 2021}}

In early 2020, the COVID-19 pandemic forced colleges and universities to quickly move to fully online content, increasing demand for OPM support. OPMs gained even greater scrutiny and criticism. Senators Elizabeth Warren and Sherrod Brown called for five OPMs to disclose the terms of their contracts with colleges and universities to determine whether they were violating laws to safeguard consumers from predatory enrollment practices.{{cite web |last1=Schwartz |first1=Natalie |title=Democratic congressional inquiry targets OPMs |url=https://www.educationdive.com/news/congressional-inquiry-targets-online-program-managers/571275/ |website=educationdive.com}} The companies mentioned were 2U, Academic Partnerships, Bisk Education, Pearson Learning and Wiley Education Services.{{cite web |last1=McKenzie |first1=Lindsay |title=Key Senators Turn Up Heat on OPMs |url=https://www.insidehighered.com/news/2020/02/05/online-program-management-companies-face-washington-microscope |website=insidehighered.com |access-date=19 December 2020}} In an analysis of 70 schools, the Century Foundation reported that "this growing private control—which is often hidden from public view—is jeopardising the quality of online programs, stripping control from colleges and universities, and putting students at risk of predatory behaviour and abuse at the hands of for-profit companies."{{cite web |last1=The Century Foundation |title=TCF Analysis of 70+ University-OPM Contracts Reveals Increasing Risks to Students, Public Education |url=https://tcf.org/content/about-tcf/tcf-analysis-70-university-opm-contracts-reveals-increasing-risks-students-public-education/?session=1 |website=tcf.org |date=12 September 2019 |publisher=The Century Foundation |access-date=27 October 2020}} Noodle acquired a competitor, HotChalk.{{cite web |last1=Lederman |first1=Doug |title=Noodle Swallows an OPM Competitor |url=https://www.insidehighered.com/digital-learning/article/2020/11/20/noodle-online-degree-enabler-buys-parts-hotchalk-former |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=12 July 2021}} Zovio also became the OPM for The University of Arizona Global Campus, after previously owning the school once known as Ashford University.

In 2021, two MOOCS became OPMs. Coursera became a publicly traded corporation valued at about $6 billion.{{cite web |last1=de León |first1=Riley |title=Coursera closes up 36%, topping $5.9 billion market cap in Wall Street debut |url=https://www.cnbc.com/2021/03/31/coursera-ipo-cour-begins-trading-on-the-nyse.html |website=www.cnbc.com |date=31 March 2021 |publisher=CNBC |access-date=3 July 2021}}{{cite web |last1=Maloney |first1=Edward J. |last2=Kim |first2=Joshua |title=Why Is 2U Spending $800 Million to Buy edX? |url=https://www.insidehighered.com/blogs/learning-innovation/why-2u-spending-800-million-buy-edx |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=3 July 2021}} 2U also announced that they would be acquiring edX, "to create an entity that would reach 50 million learners and serve most of the best universities in the United States and the world." The acquisition cost was $800 million.{{cite web |last1=Lederman |first1=Doug |title=2U, edX to Combine to Create Online Learning Giant |url=https://www.insidehighered.com/news/2021/06/29/2u-edx-combine-create-online-learning-behemoth |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=29 June 2021}} An article in Slate referred to expensive online master's degrees offered by OPMs as higher education's "second biggest scam."{{cite web |last1=WEISSMANN |first1=JORDAN |title=Master's Degrees Are the Second Biggest Scam in Higher Education |url=https://slate.com/business/2021/07/masters-degrees-debt-loans-worth-it.html |website=slate.com |date=16 July 2021 |publisher=Slate |access-date=17 July 2021}} Udemy also became a publicly traded corporation.{{cite web |last1=Agarwal |first1=Shweta |title=Udemy files for Nasdaq IPO as online learning shift fuels revenue growth |url=https://seekingalpha.com/news/3749029-udemy-files-for-nasdaq-ipo-as-online-learning-shift-fuels-revenue-growth |website=seekingalpha.com |date=5 October 2021 |publisher=Seeking Alpha |access-date=7 October 2021}} In November 2021, the Wall Street Journal had an expose on 2U and its aggressive marketing tactics.{{cite news |last1=Bannon |first1=Lisa |last2=Fuller |first2=Andrea |title=USC Pushed a $115,000 Online Degree. Graduates Got Low Salaries, Huge Debts. |url=https://www.wsj.com/articles/usc-online-social-work-masters-11636435900?mod=djemwhatsnews |newspaper=Wall Street Journal |date=9 November 2021 |access-date=10 November 2021}}

In 2022, a survey of chief online learning officers found that OPMs weren't "meeting their expectations for marketing and recruitment, even though these are the services the college officials said they needed most."{{cite web |last1=Schwartz |first1=Natalie |title=Are OPMs meeting college officials' expectations? |url=https://www.highereddive.com/news/are-opms-meeting-college-officials-expectations/633636/ |website=www.highereddive.com |publisher=Education Dive |access-date=10 October 2022}}

In 2023, the US Department of Education announced that OPMs would be subject to greater oversight, including audits. Higher education institutions would be required to report details about their agreements with OPMs by May 1, 2023. 2U filed a lawsuit to push back against increased oversight.{{cite news |last1=Douglas-Gabriel |first1=Danielle |title=Online program manager 2U sues Education Dept. over new regulation |url=https://www.washingtonpost.com/education/2023/04/05/2u-lawsuit-education-department-third-party-guidance/ |newspaper=Washington Post |access-date=10 April 2023}} Pearson left the OPM business and Wiley was preparing to sell.{{cite web |last1=Hill |first1=Phil |title=Shocking, But Not Shocking: Wiley announces plans to sell its OPM business |url=https://onedtech.beehiiv.com/p/shocking-but-not-shocking |website=onedtech.beehiiv.com |publisher=OnEdTech |access-date=15 July 2023}}

In November 2023, Academic Partnerships acquired Wiley University Services for $150 million.{{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}}

In May 2024, Minnesota was the first state to bar its public colleges from making tuition-share contracts with online program managers.{{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}}

In July 2024, 2U entered into Chapter 11 bankruptcy.{{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}}

According to the Hechinger Report, "OPMs market the programs, recruit students, counsel them through the admissions process, enroll them, provide the software and tech support needed for the programs to function and even help instructors design online-friendly courses."{{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}} 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." {{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}} Coursera spends more than one-third of its revenues on sales and marketing.{{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}}

In 2019, higher education analyst Kevin Carey stated:

"...OPMs are transforming both the economics and the practice of higher learning. They help a growing number of America’s most-lauded colleges provide online degrees—including Harvard, Yale, Georgetown, NYU, UC Berkeley, UNC Chapel Hill, Northwestern, Syracuse, Rice and USC, to name just a few. The schools often omit mention of these companies on their course pages, but OPMs typically take a 60 per cent cut of tuition, sometimes more."{{cite web |last1=Carey |first1=Kevin |title=The Creeping Capitalist Takeover of Higher Education |url=https://www.huffpost.com/highline/article/capitalist-takeover-college/ |access-date=15 July 2021 |website=www.huffpost.com |publisher=Huffington Post}}

In 2021, Coursera described an emerging strategy called the "consumer flywheel": creating stackable content and credentials from leading brand universities.{{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}}

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.{{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|access-date=17 November 2019}}{{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|access-date=17 November 2019}}

Both Phil Hill{{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}} and HolonIQ{{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}} 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).

• Educational technology
• For-profit higher education in the United States
• Massive open online course

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Category:E-learning

Category:Higher education in the United States