Should Universities License Their Courses to Third-Party Platforms Like Coursera?

 The rise of online learning platforms like Coursera, edX, and Udemy has significantly changed the landscape of higher education. These platforms offer courses from top universities and institutions around the world, making it easier for students to access quality education from anywhere. For universities, licensing courses to third-party platforms presents both opportunities and challenges. So, should universities license their courses to platforms like Coursera? Let’s explore the pros and cons of this approach.

The Benefits of Licensing Courses to Third-Party Platforms

1. Expanded Reach and Visibility Licensing courses to third-party platforms allows universities to reach a global audience. Many students, especially those in developing countries or remote locations, may not have access to the university's physical campuses but can still benefit from its educational offerings. Platforms like Coursera already have established user bases, meaning universities can tap into these networks to attract more learners without needing to invest heavily in marketing or infrastructure.

2. Monetization Opportunities Third-party platforms typically offer universities a share of the revenue generated from course enrollments. Licensing courses can provide a new revenue stream for universities, particularly in fields where demand for online courses is high, such as business, technology, and healthcare. This can be particularly beneficial for public institutions looking to diversify their funding sources or private institutions aiming to grow their digital education offerings.

3. Increased Flexibility for Learners By licensing courses to platforms like Coursera, universities provide students with more flexibility in how they engage with the content. Learners can study at their own pace, access courses from anywhere, and fit their education around their schedules. This flexibility is particularly appealing to non-traditional students, working professionals, and lifelong learners.

4. Brand Recognition Universities can benefit from increased brand recognition by licensing their courses to third-party platforms. These platforms host courses from renowned institutions, and being part of this ecosystem can enhance a university's reputation on a global scale. Additionally, students who take online courses may be more likely to pursue full degrees from that institution in the future, thereby fostering long-term relationships.

5. Access to Technology and Tools Third-party platforms often provide universities with access to advanced learning technologies, such as AI-powered personalization, data analytics, and interactive content delivery tools. By licensing their courses, universities can leverage these technologies without having to invest in building or maintaining them themselves.

The Challenges of Licensing Courses to Third-Party Platforms

1. Loss of Control Over Content and Branding When universities license their courses to third-party platforms, they may lose some degree of control over how the courses are presented and marketed. These platforms may make decisions about course pricing, promotional strategies, or how the content is packaged, which could affect the institution’s branding and educational approach. This is particularly concerning for universities that value their unique teaching style or curriculum.

2. Revenue Sharing While licensing courses to platforms like Coursera can create a new revenue stream, universities must share a significant portion of the revenue with the platform. The revenue-sharing model varies by platform but typically ranges from 40% to 60% for the platform. For some institutions, especially smaller ones with fewer resources, this split may not seem like the best return on their investment, especially if the course is already developed in-house.

3. Potential Cannibalization of Traditional Enrollment Licensing courses to online platforms could inadvertently undermine traditional enrollment in degree programs. If a university offers standalone courses online through platforms like Coursera, students may opt for these individual courses rather than enrolling in a full degree program. This is a concern for universities that rely heavily on tuition revenue from full-time students.

4. Quality Control and Student Support Although third-party platforms provide some level of learner support, universities may find it challenging to ensure the same level of student support that they offer in their on-campus programs. From grading to personalized feedback, online learning often lacks the immediacy of traditional, in-person interactions. Universities need to consider whether the third-party platform can effectively support students or if they need to invest additional resources into managing the online experience.

5. Competition with Other Institutions By licensing their courses to third-party platforms, universities may also find themselves in direct competition with other prestigious institutions offering similar content. This can create a crowded marketplace where universities must continuously innovate to differentiate themselves. In some cases, the vast number of course options on platforms like Coursera may reduce the perceived value of a specific course.

When Should Universities License Their Courses?

Licensing courses to third-party platforms makes sense under certain circumstances. Here are some scenarios where universities may benefit from this model:

1. Short-Term Courses and Microcredentials: Universities offering short-term certificates, professional development courses, or microcredentials can benefit from licensing. These programs often have high demand but do not require the depth of a full degree program. Licensing these types of courses can provide access to a global market of working professionals and lifelong learners.

2. Non-Degree Programs: For universities that want to test the online education waters or scale their non-degree offerings, third-party platforms provide an opportunity to reach students without committing to building an entire online infrastructure.

3. Collaborative Learning: Institutions seeking to collaborate with other universities or educational entities may find licensing their courses to third-party platforms an effective way to create joint learning initiatives that attract students from various regions and backgrounds.

When Should Universities Reconsider Licensing?

However, licensing is not always the best choice for universities, especially in the following cases:

1. Core Degree Programs: For core degree programs that are a significant part of a university’s offerings, licensing may not be ideal. Universities may want to maintain full control over the learning experience, curriculum, and branding, and ensure that their degree programs are delivered through their own platforms.

2. Highly Specialized Courses: If a university offers highly specialized or niche courses that require personalized instruction, licensing may not allow for the level of customization and direct interaction needed for effective learning.

3. Concerns Over Brand Identity: If a university is concerned about diluting its brand or losing control over the content and how it is presented, licensing may not align with its long-term goals.

Conclusion

Licensing courses to third-party platforms like Coursera can provide universities with numerous benefits, including increased visibility, global reach, and new revenue streams. However, it also presents challenges, particularly when it comes to maintaining control over content, revenue sharing, and student engagement. For universities that wish to expand their online presence without the extensive infrastructure costs, licensing can be an excellent way to scale. However, institutions must carefully weigh the pros and cons to ensure that it aligns with their strategic goals, particularly in relation to brand identity and the value of their core degree programs.