The challenge of going digital for universities

Around the world traditional, campus-based universities are facing difficulty in expanding student enrolment.

The rise of the ‘gig’ economy and reduction of lifelong professions are also leading some young people to wonder if the traditional four-year campus college degree is worth it. However, one interesting trend is that the demand for digital higher education continues to expand.

Globally, the higher education market is worth US$2.2 trillion. Whilst the majority of this is due to traditional face-to-face organisations, the online market is valued at US$30 billion.

As the online segment grows, so do the business models. Most of these business models involved revenue-sharing, where the contracting university requires a portion of the upfront capital investment in return for which they got a share of revenues. However, the fee-for-service model is increasingly popular, where the university pays per element provided – content, delivery, technology and marketing.

18th December 2019

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