An industry built around something free
It may seem odd to talk about an industry around content that is free to use. Yet where there is widespread demand for learning, businesses and non-profits tend to form around it, even if the central content costs nothing. Open education has produced a varied group of organizations that make, host, organize, support or sell services around open material. This article describes the range and the reasons for its expansion, with some cautions about growth claims.
The kinds of organizations involved
The sector is varied, and categories overlap.
Platforms and course providers. Some organizations host courses and make them available online, often at no charge to the learner for basic access, and sometimes with paid extras such as certificates or assessments. Others offer repositories where educators can find and share resources.
Publishers. Some traditional educational publishers have introduced open or low-cost products, while others have focused on defending existing models. A number of new publishers produce openly licensed textbooks and charge for printed copies, support or supplementary tools.
Service providers. These include firms and non-profits that provide hosting, design, accessibility checking, translation, editing, training for staff and technical support. Institutions often buy these services when they lack in-house capacity.
Technology developers. Developers build the software that supports open learning, including learning management systems, authoring tools and systems for tracking progress. Some of this software is itself open source.
Non-profits and networks. Foundations, associations and consortia fund projects, set standards, run advocacy and bring educators together.
Institutions. Universities, colleges and school systems are both customers and producers. They create resources, commission services and sometimes launch their own platforms.
Individual educators and creators. Teachers and freelancers produce and share materials, sometimes alongside paid work such as consulting or tutoring.
Why the sector has grown
Several forces help explain the interest, though it is difficult to say how much each contributes.
- Cost pressure. Concerns about the price of learning materials and of education generally have encouraged searching for lower-cost options.
- Digital delivery. As teaching moved online and more learners had connected devices, it became easier to distribute material at very low cost per user. The broader rise of online learning created demand for content and services.
- Licensing frameworks. Standard open licenses made it easier for creators to share on clear terms.
- Policy support. Some governments, funders and institutions have encouraged or required open approaches, particularly for publicly funded work.
- Professional learning demand. Adults seeking to update skills created a market for short, flexible courses.
- Expansion of mass online courses. The wave of massive open courses brought attention to the idea of free access, even though it later drew criticism and change.
How organizations earn money
Because the content is open, income usually comes from elsewhere:
- fees for certificates, assessment or accreditation
- subscriptions to premium features
- paid support, training and consulting
- selling printed copies or convenient bundles
- institutional contracts
- grants and donations
Each approach has trade-offs, and which one fits depends on the organization’s aims. The question of sustainable financing across open projects is its own subject, as is the comparison of platform revenue streams.
A caution about growth figures
Reports about the market for online or open learning often give large figures and strong growth rates. Such figures deserve careful reading.
- Definitions differ. “Open education” may be defined narrowly (openly licensed materials only) or broadly (any free or online learning), and the totals change accordingly.
- Free content is hard to value. Market size is typically measured by spending, and much of the value of open resources never appears as spending.
- Forecasts are uncertain. Projections depend on assumptions about future adoption and are often wrong, in either direction.
- Sources may have interests. Reports can come from firms selling services in the sector, who may gain from optimistic numbers.
- Counting users is not counting learning. Sign-ups are not the same as completions or benefit.
Where you see a precise figure, find out who produced it, how it was defined and what it excludes. This site does not quote market numbers because such figures are difficult to verify.
Tensions within the industry
- Open and commercial interests. Some see commercial involvement as helpful because it brings investment and polish; others worry that it may reduce openness or shift focus to profit.
- Quality and trust. As more providers enter, learners and institutions need ways to judge reliability.
- Data and privacy. Platforms that gather learner data raise questions about how it is used, which is an issue to take seriously.
- Sustainability. Projects that rely on a single funder can end abruptly.
What this means for different readers
Institutions can think of the sector as a set of options for content, tools and services, comparing both cost and openness. Educators can find communities and resources but should check quality. Learners benefit from competition and choice, and should be wary of promises on jobs or income. Entrepreneurs should consider carefully how a venture would pay for itself and whether a market truly exists.
Looking ahead
The open education industry is likely to keep changing as technology, funding and policy shift. Whether it grows, consolidates or fragments is uncertain. The reliable points are that organizations of many kinds work around open resources and that their motives, from mission to profit, shape how they behave.
This is general information, not investment or business advice.