Industry for online colleges


Many MOOCs use video lectures, employing the old form of teaching (lecturing) using a new technology. Thrun testified before the President’s Council of Advisors on Science and Technology (PCAST) that MOOC "courses are 'designed to be challenges,' not lectures, and the amount of data generated from these assessments can be evaluated 'massively using machine learning' at work behind the scenes. This approach, he said, dispels 'the medieval set of myths' guiding teacher efficacy and student outcomes, and replaces it with evidence-based, 'modern, data-driven' educational methodologies that may be the instruments responsible for a 'fundamental transformation of education' itself".
Some view the videos and other material produced by the MOOC as the next form of the textbook. "MOOC is the new textbook", according to David Finegold of Rutgers University. A study of edX student habits found that certificate-earning students generally stop watching videos longer than 6 to 9 minutes. They viewed the first 4.4 minutes (median) of 12- to 15-minute videos. Some traditional schools blend online and offline learning, sometimes called flipped classrooms. Students watch lectures online at home and work on projects and interact with faculty while in class. Such hybrids can even improve student performance in traditional in-person classes. One fall 2012 test by San Jose State and edX found that incorporating content from an online course into a for-credit campus-based course increased pass rates to 91% from as low as 55% without the online component. "We do not recommend selecting an online-only experience over a blended learning experience", says Coursera's Andrew Ng.
Because of massive enrollments, MOOCs require instructional design that facilitates large-scale feedback and interaction. The two basic approaches are:
  • Peer-review and group collaboration
  • Automated feedback through objective, online assessments, e.g. quizzes and exams Machine grading of written assignments is also underway.
Industry



Attributes of major MOOC providers, with update 
InitiativesFor profitFree to accessCertification feeInstitutional credits
edXNoYesYesNo
CourseraYesPartialYesPartial
UdacityYesYesYesPartial
UdemyYesPartialYesPartial
P2PUNoYesNoNo

Overview of potential revenue sources for three MOOC providers
edXCourseraUDACITY
  • Certification
  • Certification
  • Secure assessments
  • Employee recruitment
  • Applicant screening
  • Human tutoring or assignment marking
  • Enterprises pay to run their own training courses
  • Sponsorships
  • Tuition fees
  • Transcript services (not disclosed to students yet)
  • Certification
  • Employers paying to recruit talented students
  • Students' résumés and job match services
  • Sponsored high-tech skills courses

So-called connectivist MOOCs rely on the former approach; broadcast MOOCs rely more on the latter. This marks a key distinction between cMOOCs where the 'C' stands for 'connectivist', and xMOOCs where the x stands for extended (as in TEDx, edX) and represents that the MOOC is designed to be in addition to something else (university courses for example).
Assessment can be the most difficult activity to conduct online, and online assessments can be quite different from the bricks-and-mortar version. Special attention has been devoted to proctoring and cheating.
Peer review is often based upon sample answers or rubrics, which guide the grader on how many points to award different answers. These rubrics cannot be as complex for peer grading as for teaching assistants. Students are expected to learn via grading others and become more engaged with the course. Exams may be proctored at regional testing centers. Other methods, including "eavesdropping technologies worthy of the C.I.A." allow testing at home or office, by using webcams, or monitoring mouse clicks and typing styles. Special techniques such as adaptive testing may be used, where the test tailors itself given the student's previous answers, giving harder or easier questions accordingly.
"The most important thing that helps students succeed in an online course is interpersonal interaction and support", says Shanna Smith Jaggars, assistant director of Columbia University's Community College Research Center. Her research compared online-only and face-to-face learning in studies of community-college students and faculty in Virginia and Washington state. Among her findings: In Virginia, 32% of students failed or withdrew from for-credit online courses, compared with 19% for equivalent in-person courses.
Assigning mentors to students is another interaction-enhancing technique. In 2013 Harvard offered a popular class, The Ancient Greek Hero, instructed by Gregory Nagy and taken by thousands of Harvard students over prior decades. It appealed to alumni to volunteer as online mentors and discussion group managers. About 10 former teaching fellows also volunteered. The task of the volunteers, which required 3–5 hours per week, was to focus online class discussion. The edX course registered 27,000 students.
Research by Kop and Fournier highlighted as major challenges the lack of social presence and the high level of autonomy required. Techniques for maintaining connection with students include adding audio comments on assignments instead of writing them, participating with students in the discussion forums, asking brief questions in the middle of the lecture, updating weekly videos about the course and sending congratulatory emails on prior accomplishments to students who are slightly behind. Grading by peer review has had mixed results. In one example, three fellow students grade one assignment for each assignment that they submit. The grading key or rubric tends to focus the grading, but discourages more creative writing.
A. J. Jacobs in an op-ed in the New York Times graded his experience in 11 MOOC classes overall as a "B". He rated his professors as '"B+", despite "a couple of clunkers", even comparing them to pop stars and "A-list celebrity professors." Nevertheless, he rated teacher-to-student interaction as a "D" since he had almost no contact with the professors. The highest rated ("A") aspect of Jacobs' experience was the ability to watch videos at any time. Student-to-student interaction and assignments both received "B-". Study groups that didn't meet, trolls on message boards and the relative slowness of online vs. personal conversations lowered that rating. Assignments included multiple choice quizzes and exams as well as essays and projects. He found the multiple choice tests stressful and peer graded essays painful. He completed only 2 of the 11 classes.
MOOCs are widely seen as a major part of a larger disruptive innovation taking place in higher education. In particular, the many services offered under traditional university business models are predicted to become unbundled and sold to students individually or in newly formed bundles. These services include research, curriculum design, content generation (such as textbooks), teaching, assessment and certification (such as granting degrees) and student placement. MOOCs threaten existing business models by potentially selling teaching, assessment, and/or placement separately from the current package of services.
President Barack Obama has cited recent developments, including the online learning innovations at Carnegie Mellon University, Arizona State University and Georgia Institute of Technology, as having potential to reduce the rising costs of higher education.
James Mazoue, Director of Online Programs at Wayne State University describes one possible innovation:
The next disruptor will likely mark a tipping point: an entirely free online curriculum leading to a degree from an accredited institution. With this new business model, students might still have to pay to certify their credentials, but not for the process leading to their acquisition. If free access to a degree-granting curriculum were to occur, the business model of higher education would dramatically and irreversibly change.
But how universities will benefit by "giving our product away free online" is unclear.
No one's got the model that's going to work yet. I expect all the current ventures to fail, because the expectations are too high. People think something will catch on like wildfire. But more likely, it's maybe a decade later that somebody figures out how to do it and make money.
— James Grimmelmann, New York Law School professor
Principles of openness inform the creation, structure and operation of MOOCs. The extent to which practices of Open Design in educational technology are applied vary.

In the freemium business model the basic product – the course content – is given away free. "Charging for content would be a tragedy", said Andrew Ng. But "premium" services such as certification or placement would be charged a fee - however financial aids are given in some cases.
Course developers could charge licensing fees for educational institutions that use its materials. Introductory or "gateway" courses and some remedial courses may earn the most fees. Free introductory courses may attract new students to follow-on fee-charging classes. Blended courses supplement MOOC material with face-to-face instruction. Providers can charge employers for recruiting its students. Students may be able to pay to take a proctored exam to earn transfer credit at a degree-granting university, or for certificates of completion. Udemy allows teachers to sell online courses, with the course creators keeping 70–85% of the proceeds and intellectual property rights.
Coursera found that students who paid $30 to $90 were substantially more likely to finish the course. The fee was ostensibly for the company's identity-verification program, which confirms that they took and passed a course.
In February 2013 the American Council on Education (ACE) recommended that its members provide transfer credit from a few MOOC courses, though even the universities who deliver the courses had said that they would not. The University of Wisconsin offered multiple, competency-based bachelor's and master's degrees starting Fall 2013, the first public university to do so on a system-wide basis. The university encouraged students to take online-courses such as MOOCs and complete assessment tests at the university to receive credit. As of 2013 few students had applied for college credit for MOOC classes. Colorado State University-Global Campus received no applications in the year after they offered the option.
Academic Partnerships is a company that helps public universities move their courses online. According to its chairman, Randy Best, "We started it, frankly, as a campaign to grow enrollment. But 72 to 84 percent of those who did the first course came back and paid to take the second course."
While Coursera takes a larger cut of any revenue generated – but requires no minimum payment – the not-for-profit edX has a minimum required payment from course providers, but takes a smaller cut of any revenues, tied to the amount of support required for each course.

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