Dive Brief:
- Writing for EdTech, John Swope argues that MOOCs can be both free and profitable, in part because they feature reusable content and can take advantage of the "freemium" model.
- The freemium model lets most students take advantage of the course for free, but allows the provider to charge some students and organizations for things such as certificates and customization.
- Swope argues creating MOOCs involves mostly one-time, up-front costs that can then be made up for with revenue opportunities over a long period of time.
Dive Insight:
At the heart of Swope's argument is the idea that MOOCs are expensive to produce but in order to thrive must be offered widely and inexpensively. The two ideas he presents have merit, but MOOCs are a moving target and the competitive landscape almost certainly won't look the same in a year. Other ideas may well emerge on their own, through market forces.