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A new Moody's report on the online education market projects further growth, potential consolidation and continued challenges for for-profit providers.
Highlights include:
- Online enrollment continues to outpace on-ground enrollment -- but "not all colleges will pursue online strategies, and online education is unlikely to replace the traditional on-campus experience."
- With an increasing number of new providers comes the possibility for consolidation, as evidenced by National University's recent acquisiton of the for-profit Northcentral University.
- Potential sticking points for OPM partnerships include the lack of published research on their success rate; "risk of misaligned goals"; and an overreliance on the OPM company's capabilities that could backfire if the company experiences technical difficulties or goes out of business.
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