The economics of MOOCs: a sustainable future?

Abstract

Purpose

The purpose of this paper is to describe the present interest in the current and predicted business models of Massive Open Online Courses (MOOC); the business models that are being used by MOOC platforms and MOOC providers; discussion of the key issues and challenges; predictions about the future MOOC business models from the perspectives of platforms, providers and consumers.

Design/methodology/approach

Review of the current literature for business models and costs for MOOCs and including the business models of higher education and possible future of the higher education system.

Findings

The findings of this paper show that most MOOCs are currently based upon a “freemium” model where content is provided freely and additional services are charged for; that there are already a range of different “flavours” of MOOC and that this range is likely to further develop over time with some clear winners emerging; and that completely free and open MOOCs are not likely to be the focus of growth in the future, rather MOOCs that are sustained through charges to customers.

Practical implications

To inform the debate about likely future business models and to help greater understanding of possible business models for MOOCs to inform decision-making by managers at universities.

Originality/value

To inform the debate about likely future business models and to help greater understanding of possible business models for MOOCs to inform decision-making by managers at universities.

Citation

Porter, S. (2015), "The economics of MOOCs: a sustainable future?", The Bottom Line, Vol. 28 No. 1/2, pp. 52-62. https://doi.org/10.1108/BL-12-2014-0035

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