The Big Three in MOOCs are Coursera and Udacity, both for-profit companies, and EdX, a nonprofit run by Harvard and MIT. Like other media companies, their business challenge is to find ways to make money while offering their content for free. One strategy is to charge for credits or certificates and for the testing required to produce them. In 2013, the American Council on Education recommended that five Coursera MOOCs be accepted for college credit — and the company raised $43 million from investors. Udacity introduced an online master’s degree in computer science with the Georgia Institute of Technology for less than $7,000 — about a third of the degree’s on-campus cost. It’s also forged partnerships with companies like AT&T and Google to offer what it calls “nanodegrees” — industry-driven credentials that it says will qualify students for specific jobs. Many selective universities were early to invest in MOOCs, but U.S. colleges at large have shown caution — just 5 percent offered a MOOC in 2013. Meanwhile, more traditional online education — courses offered only to tuition-paying students as part of a college curriculum — continues to grow. When Starbucks announced a tuition-reimbursement plan to help employees earn college credits online, its partner was Arizona State University, not a MOOC provider.
MOOCs have many forebears. First there were correspondence courses, then classes over radio, television, cassettes, CDs and DVDs. Professors have been sharing course material on the Internet for more than a decade. MIT began posting its class material online in 2002 under the OpenCourseWare project. Yale started a similar effort in 2007, while Richard Levin, now the CEO of Coursera, was president. Then in 2011, Stanford professor Sebastian Thrun and Google research director Peter Norvig offered “Introduction to Artificial Intelligence,” a video lecture series with online testing and 160,000 people signed up. It wasn’t the first MOOC but it was the first at that scale, and it launched a movement. Thrun went on to start Udacity, while other Stanford professors formed Coursera. The concept’s challenges soon became apparent: Early data showed that only a small portion of students completed courses, and an experiment backed by California Gov. Jerry Brown to offer low-cost classes through MOOCs at San Jose State University was quickly abandoned when the online students lagged behind. Still, Coursera and Edx began offering classes from universities in Asia and Europe. And Mexican billionaire Carlos Slim‘s foundation forged a pact with Coursera to translate 50 MOOCs into Spanish.
Some educators question how effective MOOCs are at increasing access to higher education, as studies showed that the vast majority of those who signed up were already college-educated. Proponents argue that while hundreds of thousands of users may drop out, tens of thousands stay in, including students without degrees or from developing nations. A survey found that growing number of academic leaders say questions of quality will persist for all online education. Both proponents and skeptics say that for MOOCs to be successful, they will need to be able to offer credits that both students and employers will find meaningful. What’s less clear is whether MOOCs will turn out to be a force for revolutionary change, or end up a subset to the slightly less new trend of online classes tied to colleges in more traditional ways.
The Reference Shelf
- Journalist’s Resource provides a round-up of studies and articles on MOOCs.
- Online education trends, including data on MOOCs, are covered in a 2014 report from the Babson Survey Research Group.
- Columbia University released this report in 2014 exploring the goals of institutions offering MOOCs.
- Researchers at the University of Pennsylvania found that MOOCs have few active users and that many users are already educated.
- Bloomberg Rankings listed Coursera’s most popular courses as of June 2014.
- The Chronicle of Higher Education laid out “What You Need to Know About MOOCs.”