Ten years ago, when two Stanford professors created Coursera, few top colleges offered online classes. The free offerings on the site were made available to spread knowledge to those who couldn’t afford a campus experience.
A lot of the changing landscape of higher education is due to an evolution in demographics. Institutions are increasingly looking towards fully online degree programs, both out of a rising acceptance and low supply-and-demand for traditional models. These changes have put schools into direct competition with one another for revenue that would otherwise go back to institutions.
Meanwhile, Coursera is eager to offer more degree programs and has grown into a public company flush with funds from its recent IPO.
The company announced its new “Economic Model: How it splits revenue with the colleges it works with, which for some schools will mean getting a bigger cut.
The new arrangement is tiered so that the more revenue a college generates via Coursera courses, the less the college has to share with Coursera. Specifically, universities get a minimum of 60 percent of the revenue, but could now see as much as 75 percent in the highest tier of activity.
Read more about Coursera here.
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