Hopefully America’s university presidents have been paying close attention to the fate of the music and news industries. If a profession can be digitized and thrown up on the web, prices will tumble.
According to U.S.News & World Report, more than 4 million Americans took an online course last year, up from less than t
wo million in 2003. The recession is also contributing to the online education boom as more people consider courses that cost hundreds, rather than thousands per class credit. The University of Phoenix, the largest online education company, says new enrollment has increased 20 percent since the downturn.
Universities are going to have a tough time getting every student in a 300 person lecture hall to pony up $4000 to hear an undistinguished professor drone on for a semester when there is an online course available for a few hundred dollars taught by a team of the best academics on the planet. If the course comes with 24/7 email support, homework guides, virtual quizzes, a community built around the subject and a well-curated reservoir of academic resources, it’s easy to see how online courses could be a more effective learning option.
Traditional universities still control what counts as a legitimate education and will fight challenges to their industrial education model. But now that Jack Welch, the former CEO of GE, is entering the education business with his online MBA program, university administrators need to realize that entrepreneurs are ready to build brands that can chip away at their multibillion dollar industry. Welch’s program costs just $20,000 rather than the $100,000 an MBA would cost at a top notch school.
Universities should start collaborating on the web across campus lines to deliver the best and most cost-effective education to their students. The campus bubble has burst.
Photo by Flickr user “anne.oeldorf,” CC 2.0.







