{"id":67944,"date":"2019-08-14T09:24:21","date_gmt":"2019-08-14T13:24:21","guid":{"rendered":"http:\/\/danielschristian.com\/learning-ecosystems\/?p=67944"},"modified":"2019-08-14T09:29:00","modified_gmt":"2019-08-14T13:29:00","slug":"a-reckoning-for-2u-and-opms-mckenzie","status":"publish","type":"post","link":"http:\/\/danielschristian.com\/learning-ecosystems\/2019\/08\/14\/a-reckoning-for-2u-and-opms-mckenzie\/","title":{"rendered":"A reckoning for 2U, and OPMs? [McKenzie]"},"content":{"rendered":"

A reckoning for 2U, and OPMs?<\/strong> <\/a>— from insidehighered.com by Lindsay McKenzie
\nAfter online program management company 2U talked openly about its challenges, the company\u2019s stock plummeted. Analysts say the company, and others like it, are down but not out.<\/em><\/p>\n

Excerpt:<\/em><\/p>\n

An hour before Chip Paucek, CEO and co-founder of 2U, held an\u00a0investor call<\/a> late Tuesday afternoon [on 7\/30\/19] , the online program management company’s stock was valued at $36.50. Over the next 24 hours, as investors responded to the news he delivered, its stock plunged to $12.80 — a decrease of almost 65 percent.<\/p>\n

In that investor call, Paucek delivered a set of messages that wouldn’t have surprised many who watch the online education space closely. Online program management is a difficult business to be in. Online education is increasingly competitive, student acquisition and marketing costs are going up, and the regulatory landscape is becoming more complex.
\n…
\nOffering hybrid or fee-for-service options is something many OPM companies already do, but 2U has long been resistant to this change. It\u2019s a significant shift in strategy, said Daniel Pianko, co-founder and managing director of University Ventures.<\/p>\n

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There has been\u00a0long-running disagreement\u00a0about whether fee for service or revenue sharing is the better option for institutions, said Pianko. \u201cWhat\u2019s really interesting is that 2U went from being the strongest proponent of the revenue share forever camp to effectively embracing the future of fee for service,\u201d he said. \u201cWith the 2U move, we would expect a rapid move toward fee for service across the board.\u201d<\/strong><\/span><\/p><\/blockquote>\n

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Also see:<\/span><\/em><\/p>\n