New Stackable Offerings Give Universities Greater Choice and Customization, with a Core Set of Cutting-Edge Technologies and Services from 35% Revenue Share
2U and edX Announce New Incentives to Encourage Universities to Reduce Tuition Fees to Be More Affordable
LANHAM, Md., July 29, 2022 /PRNewswire/ — 2U, Inc. (Nasdaq: OF THEM), the parent company of the world’s leading online learning platform edXtoday announced a significant update to its partnership model as part of its transition to a platform company, unveiling new revenue-sharing options that give universities greater flexibility, as well as new tools to help partners reduce tuition fees for their online degree programs at their discretion.
“As we embrace our future as a platform company under the edX brand, we are taking bold and significant steps to help our university partners transform their institutions, expand access and lower the cost of education. higher education,” said 2U Co.-Founder and CEO Christopher “Chip” Paucek. “Higher education is at an inflection point, with learners demanding more flexibility and a better return on investment. 2U and edX firmly believe that greater accessibility is better for students, better for universities, better for business and essential for the future of higher education.”
Over the past two years, digital transformation has moved from the periphery to the forefront of higher education, with institutions in various stages of building internal e-learning capabilities. To meet universities where they are, 2U is evolving its one-for-all model to a more customizable platform-based approach that allows universities to design partnership packages that best meet their institution’s needs.
The new model combines 2U’s industry-leading technology and services with edX’s flexible approach to degree support, including access to the edX marketplace and the ability to reach the global edX community of 45 million learners. Revenue share options start at 35% for a core set of technology services and increase from there. Higher revenue share options allow partners to access the company’s full suite of services and investment capital, similar to 2U’s legacy model.
“Rice is a long-time collaborative partner of edX and 2U. We have found both organizations willing to flexibly engage with us on a range of issues as the world of online education evolves,” said the former president of rice university david lebron. “I believe that 2U’s adoption of increasingly flexible arrangements in its partnerships will ultimately serve students and universities well, and foster a greater variety of options for students which will open up more opportunities for students to backgrounds and at different times in their lives and educational trajectories.”
The foundation of the new partnership structure is a foundational degree package that supports the end-to-end student journey, from a student’s first moment of interest through graduation. With a 35% revenue share, it includes program design and management, edX marketplace and organic marketing, lead development, ongoing student support, and the digital campus and analytics ecosystem. 2U data. These services have been proven to provide strong student retention and high graduation rates.
Universities have the option to enhance the Core Degree Bundle with additional technology services, including paid digital marketing, course development, and specialized support services, such as clinical placement and faculty training and development.
Wisconsin University of Wisconsin School of Business–Madison is one of the first partners to leverage the combination of 2U and edX support, entering into a new partnership with the company to power a disruptively priced solution $24,000 Master of Business Analytics, as well as a MicroMasters® program on business fundamentals.
In addition to its new stackable offerings, 2U and edX today announced that they are redeeming revenue share points for reduced tuition in an effort to encourage new and existing partners to lower the cost of their online degree programs. For any degree partner who agrees to significantly reduce online tuition, 2U will reduce its share of program revenue.
While 2U and edX university partners are solely responsible for setting tuition fees for the more than 180 online graduate programs the company supports, there is a common misperception that the company benefits financially from higher tuition fees. But in reality, the higher the tuition, the more expensive it is for 2U to market a program and attract students. As tuition increases, student demand decreases, resulting in even higher marketing costs that are borne by 2U under its partnership model, not by the university. The data clearly shows that tuition reductions remove one of the biggest barriers to academic success, allowing more qualified learners to enroll and achieve their goals.
About 2U, Inc. (Nasdaq: OF THEM)
For more than a decade, 2U, Inc. has been the digital transformation partner of choice for leading nonprofit colleges and universities delivering high-quality online education at scale. As the parent company of edX, a leading global online learning platform, 2U provides over 45 million learners with access to world-class education in partnership with over 230 colleges, universities and businesses. Our people and technology power over 4,000 digital education offerings – from free courses to full degrees – and help unlock human potential. For more information: visit 2U.com.
SOURCE 2U, Inc.