Summary: Coursera’s introduction of a monthly subscription model for parts of its MOOC platform is not a Netflix like revolution of higher education but a mere adoption of the very successful revenue model used by e-learning platforms such as lynda.com or Pluralsight.
Of course, adding a matching and accepted payment scheme to a growing choice of tech focused Specializations courses is a logic step to take if you want your slice of this fast growing and very lucrative market segment. But it also navigates Coursera on a collision course with the aforementioned established players and the deep pockets of LinkedIn..
Oh, and what about disrupting higher education by making it accessible to everyone? iversity, Germany’s MOOC platform that was recently saved from bankruptcy, might have the answer to that question.
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Netflix for Higher Education?
Last month Tom Willerer, CPO of Coursera and former VP of Product Innovation at Netflix, introduced the new monthly subscription option in a blog post. According to TechCrunch the inspiration for this payment model came from his work at Netflix, the online streaming service that disrupted video rentals and cable TV subscriptions.
I think one does not have to look too far outside the edtech vertical to find the real inspiration behind subscriptions for Coursera’s tech skill focused Specializations courses. lynda.com and Pluralsight have successfully built their business upon this model years ago.
And given that the tech and business focused Specialization courses target the same audience as lynda.com and Pluralsight, it just makes sense to offer potential subscribers a payment model they are already familiar with. Coursera’s monthly pricing depends on the Specialization and is between $39 to $89 while lynda.com starts at $15 and Pluralsight at $29.
Coursera’s higher pricing is most likely based on the origin of the course content, meaning that a certification from an established university might still be more valuable than one from an e-learning provider.
Follow the Money
Since the MOOC hype reached its peak two years ago, almost all of the global key players have started to drift away from their focus on higher education towards catering the needs of the tech industry by filling the “skills gap”. Udacity was first with its Nanodegree programs, Coursera and edX followed suit with their Specializations and MicroMasters.
Udacity also phased out nearly all courses from higher education institutions and subject matters that are not related to the tech industry. Coursera and edX still offer a good choice of courses outside the tech sphere but that might slowly change as well.
Germany’s MOOC platform iversity escaped bankruptcy earlier this year by restructuring the firm and getting a life saving cash infusion from Holtzbrinck Digital. Before this, iversity also started to focus more on learning paths that cater to tech companies and under the new / old management it seems that courses from higher education institutions outside the fields of computer science, business and marketing won’t be a priority anymore. This leaves learners who are interested in topics outside the tech bubble with just a handful of options like UK-based FutureLearn or Bill Gates’ favorite legacy player The Great Courses Plus.
All The Same
My hunch is that in 2017 the differences between a MOOC and a tech skill learning platform will diminish even more.
As I pointed out earlier this year, there is no reason why Lynda.com could not enter the MOOC vertical by teaming up with institutions in higher education. Now being part of LinkedIn, Lynda.com would also have some interesting competitive advantages over Udacity, Coursera and edX.
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