Millions of students are online studying for college degrees, representing a $30B market.
To meet this growing demand, many higher education institutions have partnered with Online Program Management (OPM) providers.
The global OPM market is worth over $3 billion and has more than 60 providers worldwide. As more universities offer online degrees, the market is expected to grow to $7.7 billion by 2025.
While only 15% and 10% of US and Chinese college students are currently enrolled in online programs, the number is expected to increase significantly.
The market will continue to expand as students become more accustomed to flexible learning options and colleges and employers become more accepting of online education.
Hence, with the rapid growth of online learning, universities and colleges are partnering with OPM to launch their online programs quickly.
As a result, revenue-sharing models, such as fee-for-service and hybrid relationships, are becoming increasingly prevalent.
In this post, we will explore everything you need to know about Onlne Program Management (OPM) in higher education, including key services, benefits, challenges, major players, and how to choose the best OPM provider.
But first, let’s explore what is online program management.
What is Online Program Management (OPM)?
Online Program Management (OPM) is a specialized service that helps educational institutions design, develop, and deliver high-quality online courses and degree programs.
As a strategic partner, OPM offers a wide range of services to support universities and colleges transitioning to the digital medium.
OPM operations provide the ability to manage and oversee all aspects of online education, including:
- Course design: OPM providers create engaging and effective online courses.
- Marketing: OPMs promote online programs to attract students.
- Student recruitment: OPMs recruit students for online programs.
- Technological infrastructure: OPMs provide the technology needed for online learning.
For example, a university with a great Computer Science program might lack the resources to offer it online. Here’s where an OPM provider steps in.
An OPM provider can help create an engaging online experience by providing content, technology, marketing, or outreach support.
Therefore, colleges and universities can leverage their expertise and resources to deliver exceptional online programs.
Also, check out how enrollment trends are shifting from conventional, in-person marketing to digital marketing, webinars, and virtual events.
Key Services Provided by OPM Companies
OPM providers deliver comprehensive services to support every aspect of online education.
For colleges, they have been a way to boost enrollment and revenue.
Here’s what they typically manage:
- Digital Course Development
OPM companies play a key role in designing and developing high-quality online courses. They work closely with faculty to create engaging and effective learning experiences that utilize innovative technologies and instructional strategies.
- Student Recruitment for Online Programs
OPM providers employ effective marketing and recruitment strategies to attract and enroll students in online programs. This includes developing targeted marketing campaigns, managing social media, and leveraging digital advertising platforms.
- Student Enrollment Funnel
OPM companies streamline the enrollment process for online students, ensuring a smooth and efficient experience. It involves managing admissions applications, providing guidance on financial aid options, and facilitating registration.
- Student Retention Services
OPM providers are committed to helping universities retain their online students. They offer a variety of services to support student success, including academic advising, tutoring, and career counseling.
- OPM Marketing & Promotion
OPM companies develop and implement comprehensive marketing strategies to promote online programs and reach potential students. These strategies also include branding, content marketing, and public relations.
- Tech Infrastructure & Support
OPM providers often manage the technological infrastructure required for online learning, including providing access to learning management systems, online collaboration tools, and other necessary technologies.
Benefits of OPM for Higher Education Institutions
Partnering with an Online Program Management (OPM) provider offers many benefits for higher education institutions seeking to expand their online offerings.
Here are some of them:
- Increased Online Program Enrollment
OPM providers bring expertise in marketing and student recruitment, helping universities attract a larger pool of online students. This can lead to increased enrollment and revenue generation.
- Access to Expertise in Digital Education
OPM companies have the expertise and experience to design and deliver effective online courses. As a result, universities and colleges can ensure that their online programs meet the highest standards of quality and engagement.
- Reduced Operational Costs
OPM providers often handle many administrative tasks associated with online programs, such as course development, student support, and technology management. Also, it helps universities reduce their operational costs and allocate resources more efficiently.
- Enhanced Student Engagement Through Technology
OPM providers utilize innovative technologies to create engaging and interactive online learning experiences, which improves student satisfaction and retention rates.
Challenges and Considerations
While OPM partnerships offer many benefits to higher education institutions, there are also potential challenges to consider.
One of the most common business models for OPM partnerships is revenue sharing.
This can lead to potential conflicts between institutions and OPM providers over how revenue is distributed.
Universities and colleges may worry about losing a significant portion of their revenue, while OPM providers may argue that they are taking on significant risks and costs.
Moreover, OPM providers often play a significant role in designing and delivering online programs.
This can lead to concerns about institutions losing control over certain academic areas or aspects of the student experience.
Also, institutions may worry that OPM providers prioritize profit over academic quality.
In addition to these challenges, ensuring consistent branding and high-quality programs can be daunting in OPM partnerships.
Institutions may want to maintain a strong brand identity, while OPM providers may have different priorities.
Additionally, there may be concerns about the quality of online programs, particularly if OPM providers are cutting corners to reduce costs.
Major Players in the OPM Market
The OPM market is dominated by several key players, including:
1. 2U
2U offers a comprehensive suite of OPM services, including curriculum development, marketing, student support, and technology solutions.
2U primarily operates on a revenue-sharing model, which partners with universities to launch and manage online programs.
As a leading OPM provider, 2U has a strong market presence and partnerships with numerous top-tier universities, such as Arizona State University, Arcadia University, and Emerson College.
At its peak, 2U had a market cap of over $5 billion and growth rates comparable to high-flying cloud software companies.
While 2U offers a wide range of services, its revenue-sharing model can concern institutions that want to retain a larger share of program revenue.
2. Academic Partnerships
Academic Partnerships provides similar services to 2U, including curriculum development, marketing, and student support. They also focus on direct student support services.
However, this platform primarily operates on a revenue-sharing model similar to 2U.
Academic Partnerships have a strong market presence, particularly in nursing and healthcare education. Their annual revenue reached $750M in 2024.
Like 2U, Academic Partnerships' revenue-sharing model can be a concern for institutions seeking to maximize their revenue from online programs.
3. Wiley Education Services
Wiley Education Services offers a wide range of OPM services, including course development, marketing, and technology solutions.
As a John Wiley & Sons subsidiary, it also leverages its publishing and content creation expertise. According to the company's annual report, it generated $1.62 billion in revenue in 2023.
Also, they offer a variety of business models, including revenue-sharing, fixed-fee, and hybrid arrangements.
Moreover, it has a strong market presence, particularly in business, science, and technology education. However, pricing can be a concern for many universities and colleges, as it is higher than others.
4. Coursera
Coursera primarily operates as a massive open online course (MOOC) platform, but it also offers OPM services for universities looking to launch degree programs.
Coursera's OPM services are based on a revenue-sharing model, where they partner with universities to develop and deliver online degree programs.
Coursera has a strong market presence, particularly in online short courses and professional development programs. Coursera achieved a market cap of $1.28 billion in September 2024.
Coursera's OPM services may be less suitable for institutions seeking a fully managed online program, as they focus on MOOCs and online courses.
While these companies are major players in the OPM market, it's important to note that working with them can have drawbacks.
For example, many OPM providers charge high fees for their services, and revenue-sharing models can be a concern for institutions.
As a result, many institutions are turning to student recruitment companies like Think Orion.
These companies attract students to online and offline programs, helping institutions fill their classrooms and maximize revenue.
They help higher education businesses attract more students online by improving their website's search engine ranking and creating engaging content.
These companies enable colleges and universities to drive better outcomes. With an organic click-through rate of 27.6% for first-page search results (SERPs), they attract more potential students without relying on costly revenue-sharing models or high fees associated with OPMs.
Therefore, with data, expertise, and experience, they can help you drive enrollment and profitability without sharing a certain percentage of your revenue.
How to Choose an OPM Partner
When selecting an OPM partner, universities and colleges should evaluate how well the provider aligns with their institutional goals and values.
It is also important to assess the provider’s track record with similar institutions and their ability to scale programs while maintaining academic standards.
Here are some key factors to consider when making your decision:
- Define Your Academic Goals
Clearly define your institution's academic goals and objectives for online education. Look for an OPM partner that aligns with your vision and can provide the necessary expertise and support.
- Set a Budget
Determine your budget for the OPM partnership. Consider factors such as the scope of services required, the size of your online programs, and the desired return on investment.
- Review Scalability Outcomes
Assess the OPM provider's ability to scale their services as your online programs grow. Look for a partner with a proven track record of supporting large-scale online initiatives.
- Check the Expertise and Experience
Evaluate the OPM provider's expertise in online education. Look for a partner with a strong team of professionals with experience in course design, technology, marketing, and student support.
- Assess the Alignment of Values
Ensure the OPM provider's values and mission align with your institution's. This will help to foster a positive and collaborative partnership.
- Evaluate References and Case Studies
Ask for references from other universities that have worked with the OPM provider. Review their case studies to learn about their experiences and outcomes.
- Review their Contractual Terms
Carefully review the terms of the OPM contract, focusing on revenue-sharing models, intellectual property rights, and dispute-resolution mechanisms.
- Assess Platform Features
Evaluate the OPM provider's technology platform and its compatibility with your institution's existing systems. A user-friendly platform is essential for delivering a high-quality online learning experience.
With this in mind, you can select an OPM partner to help you achieve your online education goals and provide a positive experience for your students.
Conclusion
Online Program Management (OPM) is becoming a new standard in the online education industry, offering colleges a streamlined way to develop and manage online courses.
As more institutions turn to OPM, they will be able to reach a broader student base and improve the quality of their online programs.
An established OPM can launch your online program faster and more efficiently because they have the necessary infrastructure, experience, and resources already in place.
They handle everything from course design to marketing, allowing your institution to focus on academics while they manage the operational complexities.
With proven systems and processes, it can reduce the time it takes to go online, ensuring quicker enrollment and faster returns on investment.
Therefore, as more people want to take online courses, OPM will become even more important.
However, institutions must weigh the potential drawbacks of the revenue-sharing model.
Related: Learn more about our higher education marketing agency services
Manno Notermans
I’m Manno, co-founder and CSO at Think Orion. I work with universities, exam prep companies, and course creators to use insight-led marketing that reflects how people choose what to learn. Most of my work comes down to understanding those choices and helping education brands align with them. At Think Orion, we use research, creative strategy, and clear systems to help good programs reach the right students.
