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February 2, 2010, 02:00 PM ET
Free Online Courses Don't Hurt Paid Enrollment
When customers visit Amazon.com, the Web site lets them sample parts of books for free. Some open-education advocates think this try-it-before-you-buy-it idea offers an answer to one of the biggest questions facing the movement to publish course materials free online: What business model can support giving away your content?
New research takes a close look at what happened when one institution, Brigham Young University, experimented with granting free access to the content of some of its distance-education courses. The study examined the cost of opening up those materials and the impact their publication had on paid enrollments, a concern for institutions worried that giving away free courses could cannibalize their ranks of paying students.
The data suggest they needn’t worry. Opening the courses “provided neither a large positive marketing effect that boosted enrollments nor a large negative free-rider impact decreasing enrollments,” wrote Justin K. Johansen, who conducted the study as a dissertation in instructional psychology and technology at Brigham Young, where he also serves as director of independent study.
“Really, the OpenCourseWare ended up serving as an advertising tool,” Mr. Johansen said in an interview. Over all, the six opened courses attracted 13,795 visits and 445 paid enrollments in four months. But Mr. Johansen cautions that the limited length of the pilot study meant that a “statistically significant” measure of the impact of opening the classes on paid enrollment “was not possible.”
When it came to cost, the study found the primary expense was developing the software tools to convert courses from their existing format to one appropriate for open publication. The first university course took $3,485 to open, but the average cost for subsequent college-level courses dropped to $284.
David Wiley, a Brigham Young associate professor and open-education leader, praises Mr. Johansen's research as "the first piece of empirical work I am aware of that demonstrates clearly that a distance-learning program can simultaneously (1) provide a significant public good by publishing open courseware and (2) be revenue positive while doing it."
That could be welcome news for a movement whose past projects have been largely paid for by outside grants. The philanthropic support is now running out for key ventures, a situation that has already shut down Utah State University's OpenCourseWare. Writes Mr. Johansen: "From a financial perspective, there do not appear to be any organizations currently running large-scale, self-sustaining open-publishing initiatives."


Comments
1. robabel - February 02, 2010 at 05:42 pm
This finding is consistent with other open course efforts around the world such as OpenLearn at the UK's Open University. However, to determine the "return on investment" it would be necessary to understand what the cost was relative to student revenue gained PRIMARILY due to the publishing of the open material (versus those that would have enrolled anyway). Also, it may be possible that some students were actually lost due to viewing the open material - how to track that.
But, the bottomline here is that this is a good strategy as the cost for conversion is typically not high - and may be zero in some instances. But, then again, we could argue that students are better served by greater transparency on expected learning outcomes and teaching methodologies in general - not necessarily having to go down into the course materials to figure out if this is the right course for them.
Rob Abel
IMS Global Learning Consortium
http://www.imsglobal.org/
2. arrive2__net - February 03, 2010 at 01:27 am
I think it is revealing that the open courseware provided an advertising function. Certainly it would establish good will, and a sense of knowing what the school expects in the course in prospective students. Students who otherwise may be completely unfamiliar with the school can get to know it. I seems to me that such course material may have some value to the high school students, thus may address the prospective campus student in that way also.
Bernard Schuster
Arrive2.net
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