What are the Implications of the Increasingly Crowded Online Higher Education Landscape?

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Data from Eduventures, a research and consulting firm serving the higher education industry, suggests that the online market share of for-profit colleges and universities will continue to slow for the next few years while traditional non-profit institutions enjoy a resurgence.

While Eduventures forecasts greater online market share for nonprofits in the medium-term, all types of schools should be wary of the risks of an increasingly commoditized online value proposition.

Data from Eduventures recent release, Online Higher Education Market Update 2012/2013, indicates that the for-profit share of the online market will continue to decline for the next few years. Non-profit schools, leveraging stronger brand fundamentals, will enjoy a period of relative resurgence, even while online enrollment continues to fragment across a large number of providers.

The report’s author, Eduventures Vice President and Principal Analyst Richard Garrett, states: “While Eduventures forecasts greater online market share for nonprofits in the medium-term, all types of schools should be wary of the risks of an increasingly commoditized online value proposition. With so many schools offering online programs, plus the rise of alternatives such as MOOCs, supply may outpace demand, meaning weaker prospects for most schools. Eduventures forecasts a for-profit resurgence longer-term, arguing that for-profits may be best-placed to innovate again and take online higher education to the next level.”

About Eduventures, Inc.
Eduventures is the industry leader in research, data, consulting, and advisory services for the higher education community. For nearly 20 years, college and university leaders and education industry providers have looked to Eduventures for innovative and forward-thinking ideas, for insights into best practices, and for help with making the strategic and operational decisions vital to their success.

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