Techno-News Blog

April 24, 2019

Moody’s: Competition, consolidation shape online education market

Filed under: Uncategorized — admin @ 12:20 am

By Hallie Busta, Education Dive
Competition is heating up for colleges online, and new market entrants are gaining share, according to a new analyst report from Moody’s Investors Service, which calls the expansion “a credit positive” for higher education.¬†Online-only enrollment grew 38% from 2012 to 2017, and it will continue to increase as “a key enrollment strategy” for institutions, the authors write. However, not all colleges will take this route, and it is “unlikely to replace” on-campus education. Still, the growth online comes as overall higher ed enrollment has leveled off. Critical to colleges’ success online is differentiation, which can include price, delivery model, perceived value and faculty service levels. Public universities’ large online enrollment, low tuition and access-oriented mission will help them maintain market share.

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