Course-Management Companies Are Still Seeking Elusive Profits

Michael Arnone, Tidsskriftet for Universiteternes Efter- og Videreuddannelse, May 24, 2002
Commentary by Stephen Downes

I felt like a voice in the wildreness through last fall and winter when I predicted an e-learning slump this summer, but as the reports come in my pessimism has been vindicated. This article highlights reports from three major e-learning companies who, depite bold predictions last fall, are still some distance away from profitability. This follows a report last week in Information Week describing drooping fortunes on the corporate side of the house. OK, the bad news first: the industry hasn't hit bottom yet - the combined effect of standards confusion (and misrepresentations), price increases and raised expectations has yet to take hold. And the industry-wide consolidation that I've been predicting still hasn't happened (watch for it in June or July, I would say). The bottom will come no later than July and by October everybody will be singing Happy Days again.
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