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“Decline of Online Program Management: New Data Reveals 56% Drop in Higher Education Partnerships”

A recent report from Validated Insights has indicated a significant decline in the online program management (OPM) market, characterized by a 56.1 percent reduction in new partnerships during the first half of 2024 compared to the same period in 2023. This downturn marks the lowest level of partnership activity since 2020, with only 29 new agreements established.

Increase in Contract Terminations

The report also highlights an increase in contract terminations within the industry. In 2023, the number of OPM partnerships that ended—whether through termination or natural expiration—reached 147, nearly equaling the total of the previous three years.

Shifts in University Strategy

Experts suggest that this trend reflects a growing desire among universities for increased control over admissions and operational processes, diminishing the attractiveness of traditional OPM partnerships. The funding landscape for OPM providers has also changed dramatically, with investments dropping by 97 percent since their peak in early 2021.

Regulatory Pressures

Furthermore, regulatory pressures are compounding the difficulties faced by the OPM market. Increased scrutiny from the U.S. Department of Education, along with recent legislative efforts in Minnesota aimed at banning revenue-sharing OPM partnerships at state institutions, contributes to a less favorable environment for OPM providers.

Expert Insights

Brady Colby, Head of Market Research at Validated Insights, commented that these trends reveal a waning interest in traditional OPM models. He noted a shift toward more enablement-driven services, moving away from older revenue-sharing frameworks.

Future Updates

Validated Insights plans to issue quarterly updates regarding the OPM market and other pertinent insights related to trends in higher education.

(Source: Business Wire)

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