Dive Brief:
- For-profit massive open online course provider Coursera is shifting its business model to try to increase profit margins, announcing it will begin charging $29 to $99 per course for students who want to submit assignments for grading, including in the vast majority of its Specializations sequences.
- In a blog post announcing the change, the company said the new model would bring Coursera toward sustainability and “enable continued investment” as it continues its mission to change the world by providing universal access to learning experiences.
- Inside Higher Ed reports that critics have characterized the move as a push for profits that doesn’t align with a mission to provide universal access, and it will move Coursera farther away from nonprofit MOOC provider edX, which has taken this opportunity to recommit to its free offerings.
Dive Insight:
Coursera will offer financial aid to cover the new cost of the courses, as it has offered financial aid for students who chose to pay to earn a certificate upon completion of the course. Coursera now becomes the second major massive open online course provider to shift its business model away from free, universal access. Udacity founder Sebastian Thrun announced a new business model for his company in 2013, saying the original online platform didn’t actually serve the students he had been trying to reach. Udacity has pivoted toward vocational education for adult learners looking for a career change, specializing in “nanodegrees” created in partnership with companies like Google.
Recent research out of Harvard analyzed MOOC participant data to find clear correlations between neighborhood income and educational attainment data, proving the courses did not democratize education as many had originally hoped it would. The question is whether MOOC providers will accept defeat and move on, like Thrun, or shift their models to better reach the original targets.
