The State of Digital Education

THE STATE OF DIGITAL EDUCATION EDUCATION IS A 7 TRILLION DOLLAR INDUSTRY THAT'S O7UX THE SIZE OF THE ONLINE ADVERTISING MARKET EQUAL TO X THE GLOBAL MOBILE INDUSTRY MORE THAN THE GDP OF ITALY, FRANCE, AND THE UK - COMBINED The Internet continues to disrupt entire industries EDUCATION'S INTERNET MOMENT IS NOW COMMERCE MUSIC COMMUNICATION amazon.com facebook. iTunes EDUCATION PayPal napster twitter Vastly improved technology and increased student drop out rates have set the stage for disruption. ADVERTISING INFORMATION VIDEO Google Google NETFLIX AdWords d uble click You Tube WIKIPEDIA The Free Enyctedu » THE EDUCATION CRISIS 30% of students in the U.S. fail out of high school 33% of U.S. college students require remediation 46% of U.S. college students do not graduate 1 STUDENT DROPS OUT OF HIGH SCHOOL EVERY 26 SECONDS. > THE CHANGING LANDSCAPE From the one-size-fits-all model .to technology-enabled solutions customized for each student. and unprepared students... Three new trends in particular are bringing education into the modern age and helping to improve learning outcomes. DIGITAL TEXTBOOKS SALES DIGITAL CONTENT (AS PERCENT OF U.S. TEXTBOOK MARKET) 2010 1.5% Digital textbook sales are projected to grow rapidly over the next decade 2011 3% 2012 6% 2013 11% 2014 19.5% 2015 26% 2016 35% MASS DISTRIBUTION 6000000 ONLINE COLLEGE COURSE ENROLLMENT The transformation of content from print to digital formats streamlines distribu- tion and enables learning to happen anywhere. 5000000 4000000 3000000 2000000 1000000 PERSONALIZED LEARNING New technologies generate individual learning profiles and custom solutions that ensure concept mastery. "Today, our schools must prepare all students for college and careers-and do far more to personalize instruction and employ the smart use of technology." -Arne Duncan, U.S. Secretary of Education » DIGITAL EDUCATION TODAY GROWTH OF ONLINE LEARNING ENROLLMENT 17.0% 14x Online learning enrollment growth rate vs. overall higher education enrollment 1.2% Overall higher education Online learning TEACHERS ARE EMBRACING ONLINE LEARNING TOOLS 93% of teachers believe online 95% of teachers believe that tools improve performance online tools engage students 93% 95% COST OF ELEARNING VS. INSTRUCTOR-LED TRAINING Cost for one-hour of instruction for 100 students s20,000 $17,000 S15.000 |40% $10,000 $9,500 $5,000 Cost savings by going digital Instructor-led training elearning » DIGITAL EDUCATION TOMORROW PROJECTED GROWTH IN BLENDED LEARNING BLENDED LEARNING COURSES, WHICH CONTAIN BOTH CLASSROOM AND ONLINE COMPONENTS, ARE GROWING RAPIDLY. 2010 30% 2014 47% 2020 98% People Using Blended Learning Solutions » THE FUTURE CLASSROOM The education community is already adopting new technologies which will work together to result in more effective learning solutions. LEARNING CLOUD COMPUTING ANALYTICS GAME-BASED LEARNING PERSONALIZED OPEN CONTENT MOBILE LEARNING LEARNING ENVIRONMENTS WHO'S DELIVERING SOLUTIONS TODAY? Educational publishers and degree-granting institutions are key to the continued growth of digital education. FACT: U.S. COLLEGES EDUCATE 19 MILLION STUDENTS EACH YEAR. FACT: 96% OF UNIVERSITIES OFFER AT LEAST ONE ONLINE CLASS. FACT: BY 2014, 81% OF POST-SECONDARY STUDENTS FACT: 75,227,000 STUDENTS WILL TAKE SOME OR ALL OF ATTEND K THROUGH COLLEGE THEIR CLASSES ONLINE. INSTITUTIONS IN THE U.S. FACT: IN 2010, 6.3 MILLION STUDENTS TOOK AT LEAST ONE ONLINE COURSE AT DEGREE-GRANTING POSTSECONDARY INSTITUTIONS. NON-PROFIT UNIVERSITIES WITH ONLINE DEGREE PROGRAMS Number of students enrolled Cornell University 10,611 Drexel University 9,229 Penn State University 8,524 Purdue University 8,114 Ohio State University 4,819 George Washington University 3,629 Arizona State University 3,000 Boston University 3,000 University of Southern California 2,500 Villanova University 2,117 2,500 5,000 7,500 10,000 20,000 MAJOR DIGITAL CONTENT PROVIDERS Number of students reached 66,811 122,702 500,000 1.8 MILLION Florida VirtualSchool 9 MILLION 2.7 MILLION connect PEARSON CENGAGE * Learning Sources: Ambient Insight | Sloan Consortium | American Association of School Administrators | Center for Budget and Policy Priorities INew Media Consortium | Xplana Livres Hebdo Publishers Weekly I BMO Capital Markets I Xplana | Gates Foundation | CIA World Factbook | Go-eknowle dge.com | Arizona State University | University of Alabama Devry University | Capella Education | Florida Virtual School I Michigan Virtual School I Mackinac.org | Trade.gov I Education-Portal.com I CornelliSun.com I Dartmouth.edu Knewton Internal Estimates Enrollment growth rate DO DO DO DO DO DO DO DO DoE DeE DO EDE DOE DO THE STATE OF DIGITAL EDUCATION EDUCATION IS A 7 TRILLION DOLLAR INDUSTRY THAT'S 57UX THE SIZE OF THE ONLINE ADVERTISING MARKET EQUAL TO (X THE GLOBAL MOBILE INDUSTRY MORE THAN THE GDP OF ITALY, FRANCE, AND THE UK - COMBINED The Internet continues to disrupt entire industries EDUCATION'S INTERNET MOMENT IS NOW COMMERCE MUSIC COMMUNICATION amazon.com facebook. iTunes EDUCATION РayPal napster twitter Vastly improved technology and increased student drop out rates have set the stage for disruption. ADVERTISING INFORMATION VIDEO Google Google NETFLIX AdWords d uble click You Tube WIKIPEDIA The Fre Enyclpdu » THE EDUCATION CRISIS 30% of students in the U.S. fail out of high school 33% of U.S. college students require remediation 46% of U.S. college students do not graduate 1 STUDENT DROPS OUT OF HIGH SCHOOL EVERY 26 SECONDS. > THE CHANGING LANDSCAPE From the one-size-fits-all model .to technology-enabled solutions customized for each student. and unprepared students... Three new trends in particular are bringing education into the modern age and helping to improve learning outcomes. DIGITAL TEXTBOOKS SALES DIGITAL CONTENT (AS PERCENT OF U.S. TEXTBOOK MARKET) 2010 1.5% Digital textbook sales are projected to grow rapidly over the next decade 2011 3% 2012 6% 2013 11% 2014 19.5% 2015 26% 2016 35% 2 MASS DISTRIBUTION 6000000 ONLINE COLLEGE COURSE ENROLLMENT The transformation of content from print to digital formats streamlines distribu- 5000000 tion and enables learning to happen anywhere. 4000000 3000000 2000000 1000000 PERSONALIZED LEARNING New technologies generate individual learning profiles and custom solutions that ensure concept mastery. "Today, our schools must prepare all students for college and careers-and do far more to personalize instruction and employ the smart use of technology." -Arne Duncan, U.S. Secretary of Education » DIGITAL EDUCATION TODAY GROWTH OF ONLINE LEARNING ENROLLMENT 17.0% 14x Online learning enrollment growth rate vs. overall higher education enrollment 1.2% Overall higher education Online learning TEACHERS ARE EMBRACING ONLINE LEARNING TOOLS 93% of teachers believe online 95% of teachers believe that tools improve performance online tools engage students 93% 95% COST OF ELEARNING VS. INSTRUCTOR-LED TRAINING Cost for one-hour of instruction for 100 students s20,000 $17,000 S15.000 |40% $10,000 $9,500 $5,000 Cost savings by going digital Instructor-led training elearning » DIGITAL EDUCATION TOMORROW PROJECTED GROWTH IN BLENDED LEARNING BLENDED LEARNING COURSES, WHICH CONTAIN BOTH CLASSROOM AND ONLINE COMPONENTS, ARE GROWING RAPIDLY. 2010 30% 2014 47% 2020 98% People Using Blended Learning Solutions > THE FUTURE CLASSROOM The education community is already adopting new technologies which will work together to result in more effective learning solutions. LEARNING CLOUD COMPUTING ANALYTICS GAME-BASED LEARNING PERSONALIZED OPEN CONTENT MOBILE LEARNING LEARNING ENVIRONMENTS WHO'S DELIVERING SOLUTIONS TODAY? Educational publishers and degree-granting institutions are key to the continued growth of digital education. FACT: U.S. COLLEGES EDUCATE 19 MILLION STUDENTS EACH YEAR. FACT: 96% OF UNIVERSITIES OFFER AT LEAST ONE ONLINE CLASS. FACT: BY 2014, 81% OF POST-SECONDARY STUDENTS FACT: 75,227,000 STUDENTS WILL TAKE SOME OR ALL OF ATTEND K THROUGH COLLEGE THEIR CLASSES ONLINE. INSTITUTIONS IN THE U.S. FACT: IN 2010, 6.3 MILLION STUDENTS TOOK AT LEAST ONE ONLINE COURSE AT DEGREE-GRANTING POSTSECONDARY INSTITUTIONS. NON-PROFIT UNIVERSITIES WITH ONLINE DEGREE PROGRAMS Number of students enrolled Cornell University 10,611 Drexel University 9,229 Penn State University 8,524 Purdue University 8,114 Ohio State University 4,819 George Washington University 3.629 Arizona State University 3.000 Boston University 3,000 University of Southern California 2,500 Villanova University 2,117 2,500 5,000 7,500 10,000 20,000 MAJOR DIGITAL CONTENT PROVIDERS Number of students reached 66,811 122,702 k 500,000 1.8 MILLION Florida VirtualSchool 9 MILLION 2.7 MILLION connect PEARSON CENGAGE * Learning Sources: Ambient Insight | Sloan Consortium | American Association of School Administrators | Center for Budget and Policy Priorities INew Media Consortium | Xplana Livres Hebdo Publishers Weekly I BMO Capital Markets I Xplana | Gates Foundation I CIA World Factbook | Go-eknowle dge.com | Arizona State University | University of Alabama Devry University | Capella Education | Florida Virtual School I Michigan Virtual School I Mackinac.org | Trade.gov I Education-Portal.com I CorneliSun.com I Oartmouth.edu Knewton Internal Estimates Enrollment growth rate DO DO DO DO DO DO DO DO EDOE DOIE D EDOE De DO THE STATE OF DIGITAL EDUCATION EDUCATION IS A 7 TRILLION DOLLAR INDUSTRY THAT'S 57UX THE SIZE OF THE ONLINE ADVERTISING MARKET EQUAL TO (X THE GLOBAL MOBILE INDUSTRY MORE THAN THE GDP OF ITALY, FRANCE, AND THE UK - COMBINED The Internet continues to disrupt entire industries EDUCATION'S INTERNET MOMENT IS NOW COMMERCE MUSIC COMMUNICATION amazon.com facebook. iTunes EDUCATION РayPal napster twitter Vastly improved technology and increased student drop out rates have set the stage for disruption. ADVERTISING INFORMATION VIDEO Google Google NETFLIX AdWords d uble click You Tube WIKIPEDIA The Fre Enyclpdu » THE EDUCATION CRISIS 30% of students in the U.S. fail out of high school 33% of U.S. college students require remediation 46% of U.S. college students do not graduate 1 STUDENT DROPS OUT OF HIGH SCHOOL EVERY 26 SECONDS. > THE CHANGING LANDSCAPE From the one-size-fits-all model .to technology-enabled solutions customized for each student. and unprepared students... Three new trends in particular are bringing education into the modern age and helping to improve learning outcomes. DIGITAL TEXTBOOKS SALES DIGITAL CONTENT (AS PERCENT OF U.S. TEXTBOOK MARKET) 2010 1.5% Digital textbook sales are projected to grow rapidly over the next decade 2011 3% 2012 6% 2013 11% 2014 19.5% 2015 26% 2016 35% 2 MASS DISTRIBUTION 6000000 ONLINE COLLEGE COURSE ENROLLMENT The transformation of content from print to digital formats streamlines distribu- 5000000 tion and enables learning to happen anywhere. 4000000 3000000 2000000 1000000 PERSONALIZED LEARNING New technologies generate individual learning profiles and custom solutions that ensure concept mastery. "Today, our schools must prepare all students for college and careers-and do far more to personalize instruction and employ the smart use of technology." -Arne Duncan, U.S. Secretary of Education » DIGITAL EDUCATION TODAY GROWTH OF ONLINE LEARNING ENROLLMENT 17.0% 14x Online learning enrollment growth rate vs. overall higher education enrollment 1.2% Overall higher education Online learning TEACHERS ARE EMBRACING ONLINE LEARNING TOOLS 93% of teachers believe online 95% of teachers believe that tools improve performance online tools engage students 93% 95% COST OF ELEARNING VS. INSTRUCTOR-LED TRAINING Cost for one-hour of instruction for 100 students s20,000 $17,000 S15.000 |40% $10,000 $9,500 $5,000 Cost savings by going digital Instructor-led training elearning » DIGITAL EDUCATION TOMORROW PROJECTED GROWTH IN BLENDED LEARNING BLENDED LEARNING COURSES, WHICH CONTAIN BOTH CLASSROOM AND ONLINE COMPONENTS, ARE GROWING RAPIDLY. 2010 30% 2014 47% 2020 98% People Using Blended Learning Solutions > THE FUTURE CLASSROOM The education community is already adopting new technologies which will work together to result in more effective learning solutions. LEARNING CLOUD COMPUTING ANALYTICS GAME-BASED LEARNING PERSONALIZED OPEN CONTENT MOBILE LEARNING LEARNING ENVIRONMENTS WHO'S DELIVERING SOLUTIONS TODAY? Educational publishers and degree-granting institutions are key to the continued growth of digital education. FACT: U.S. COLLEGES EDUCATE 19 MILLION STUDENTS EACH YEAR. FACT: 96% OF UNIVERSITIES OFFER AT LEAST ONE ONLINE CLASS. FACT: BY 2014, 81% OF POST-SECONDARY STUDENTS FACT: 75,227,000 STUDENTS WILL TAKE SOME OR ALL OF ATTEND K THROUGH COLLEGE THEIR CLASSES ONLINE. INSTITUTIONS IN THE U.S. FACT: IN 2010, 6.3 MILLION STUDENTS TOOK AT LEAST ONE ONLINE COURSE AT DEGREE-GRANTING POSTSECONDARY INSTITUTIONS. NON-PROFIT UNIVERSITIES WITH ONLINE DEGREE PROGRAMS Number of students enrolled Cornell University 10,611 Drexel University 9,229 Penn State University 8,524 Purdue University 8,114 Ohio State University 4,819 George Washington University 3.629 Arizona State University 3.000 Boston University 3,000 University of Southern California 2,500 Villanova University 2,117 2,500 5,000 7,500 10,000 20,000 MAJOR DIGITAL CONTENT PROVIDERS Number of students reached 66,811 122,702 k 500,000 1.8 MILLION Florida VirtualSchool 9 MILLION 2.7 MILLION connect PEARSON CENGAGE * Learning Sources: Ambient Insight | Sloan Consortium | American Association of School Administrators | Center for Budget and Policy Priorities INew Media Consortium | Xplana Livres Hebdo Publishers Weekly I BMO Capital Markets I Xplana | Gates Foundation I CIA World Factbook | Go-eknowle dge.com | Arizona State University | University of Alabama Devry University | Capella Education | Florida Virtual School I Michigan Virtual School I Mackinac.org | Trade.gov I Education-Portal.com I CorneliSun.com I Oartmouth.edu Knewton Internal Estimates Enrollment growth rate DO DO DO DO DO DO DO DO EDOE DOIE D EDOE De DO THE STATE OF DIGITAL EDUCATION EDUCATION IS A 7 TRILLION DOLLAR INDUSTRY THAT'S 57UX THE SIZE OF THE ONLINE ADVERTISING MARKET EQUAL TO (X THE GLOBAL MOBILE INDUSTRY MORE THAN THE GDP OF ITALY, FRANCE, AND THE UK - COMBINED The Internet continues to disrupt entire industries EDUCATION'S INTERNET MOMENT IS NOW COMMERCE MUSIC COMMUNICATION amazon.com facebook. iTunes EDUCATION РayPal napster twitter Vastly improved technology and increased student drop out rates have set the stage for disruption. ADVERTISING INFORMATION VIDEO Google Google NETFLIX AdWords d uble click You Tube WIKIPEDIA The Fre Enyclpdu » THE EDUCATION CRISIS 30% of students in the U.S. fail out of high school 33% of U.S. college students require remediation 46% of U.S. college students do not graduate 1 STUDENT DROPS OUT OF HIGH SCHOOL EVERY 26 SECONDS. > THE CHANGING LANDSCAPE From the one-size-fits-all model .to technology-enabled solutions customized for each student. and unprepared students... Three new trends in particular are bringing education into the modern age and helping to improve learning outcomes. DIGITAL TEXTBOOKS SALES DIGITAL CONTENT (AS PERCENT OF U.S. TEXTBOOK MARKET) 2010 1.5% Digital textbook sales are projected to grow rapidly over the next decade 2011 3% 2012 6% 2013 11% 2014 19.5% 2015 26% 2016 35% 2 MASS DISTRIBUTION 6000000 ONLINE COLLEGE COURSE ENROLLMENT The transformation of content from print to digital formats streamlines distribu- 5000000 tion and enables learning to happen anywhere. 4000000 3000000 2000000 1000000 PERSONALIZED LEARNING New technologies generate individual learning profiles and custom solutions that ensure concept mastery. "Today, our schools must prepare all students for college and careers-and do far more to personalize instruction and employ the smart use of technology." -Arne Duncan, U.S. Secretary of Education » DIGITAL EDUCATION TODAY GROWTH OF ONLINE LEARNING ENROLLMENT 17.0% 14x Online learning enrollment growth rate vs. overall higher education enrollment 1.2% Overall higher education Online learning TEACHERS ARE EMBRACING ONLINE LEARNING TOOLS 93% of teachers believe online 95% of teachers believe that tools improve performance online tools engage students 93% 95% COST OF ELEARNING VS. INSTRUCTOR-LED TRAINING Cost for one-hour of instruction for 100 students s20,000 $17,000 S15.000 |40% $10,000 $9,500 $5,000 Cost savings by going digital Instructor-led training elearning » DIGITAL EDUCATION TOMORROW PROJECTED GROWTH IN BLENDED LEARNING BLENDED LEARNING COURSES, WHICH CONTAIN BOTH CLASSROOM AND ONLINE COMPONENTS, ARE GROWING RAPIDLY. 2010 30% 2014 47% 2020 98% People Using Blended Learning Solutions > THE FUTURE CLASSROOM The education community is already adopting new technologies which will work together to result in more effective learning solutions. LEARNING CLOUD COMPUTING ANALYTICS GAME-BASED LEARNING PERSONALIZED OPEN CONTENT MOBILE LEARNING LEARNING ENVIRONMENTS WHO'S DELIVERING SOLUTIONS TODAY? Educational publishers and degree-granting institutions are key to the continued growth of digital education. FACT: U.S. COLLEGES EDUCATE 19 MILLION STUDENTS EACH YEAR. FACT: 96% OF UNIVERSITIES OFFER AT LEAST ONE ONLINE CLASS. FACT: BY 2014, 81% OF POST-SECONDARY STUDENTS FACT: 75,227,000 STUDENTS WILL TAKE SOME OR ALL OF ATTEND K THROUGH COLLEGE THEIR CLASSES ONLINE. INSTITUTIONS IN THE U.S. FACT: IN 2010, 6.3 MILLION STUDENTS TOOK AT LEAST ONE ONLINE COURSE AT DEGREE-GRANTING POSTSECONDARY INSTITUTIONS. NON-PROFIT UNIVERSITIES WITH ONLINE DEGREE PROGRAMS Number of students enrolled Cornell University 10,611 Drexel University 9,229 Penn State University 8,524 Purdue University 8,114 Ohio State University 4,819 George Washington University 3.629 Arizona State University 3.000 Boston University 3,000 University of Southern California 2,500 Villanova University 2,117 2,500 5,000 7,500 10,000 20,000 MAJOR DIGITAL CONTENT PROVIDERS Number of students reached 66,811 122,702 k 500,000 1.8 MILLION Florida VirtualSchool 9 MILLION 2.7 MILLION connect PEARSON CENGAGE * Learning Sources: Ambient Insight | Sloan Consortium | American Association of School Administrators | Center for Budget and Policy Priorities INew Media Consortium | Xplana Livres Hebdo Publishers Weekly I BMO Capital Markets I Xplana | Gates Foundation I CIA World Factbook | Go-eknowle dge.com | Arizona State University | University of Alabama Devry University | Capella Education | Florida Virtual School I Michigan Virtual School I Mackinac.org | Trade.gov I Education-Portal.com I CorneliSun.com I Oartmouth.edu Knewton Internal Estimates Enrollment growth rate DO DO DO DO DO DO DO DO EDOE DOIE D EDOE De DO THE STATE OF DIGITAL EDUCATION EDUCATION IS A 7 TRILLION DOLLAR INDUSTRY THAT'S 57UX THE SIZE OF THE ONLINE ADVERTISING MARKET EQUAL TO (X THE GLOBAL MOBILE INDUSTRY MORE THAN THE GDP OF ITALY, FRANCE, AND THE UK - COMBINED The Internet continues to disrupt entire industries EDUCATION'S INTERNET MOMENT IS NOW COMMERCE MUSIC COMMUNICATION amazon.com facebook. iTunes EDUCATION РayPal napster twitter Vastly improved technology and increased student drop out rates have set the stage for disruption. ADVERTISING INFORMATION VIDEO Google Google NETFLIX AdWords d uble click You Tube WIKIPEDIA The Fre Enyclpdu » THE EDUCATION CRISIS 30% of students in the U.S. fail out of high school 33% of U.S. college students require remediation 46% of U.S. college students do not graduate 1 STUDENT DROPS OUT OF HIGH SCHOOL EVERY 26 SECONDS. > THE CHANGING LANDSCAPE From the one-size-fits-all model .to technology-enabled solutions customized for each student. and unprepared students... Three new trends in particular are bringing education into the modern age and helping to improve learning outcomes. DIGITAL TEXTBOOKS SALES DIGITAL CONTENT (AS PERCENT OF U.S. TEXTBOOK MARKET) 2010 1.5% Digital textbook sales are projected to grow rapidly over the next decade 2011 3% 2012 6% 2013 11% 2014 19.5% 2015 26% 2016 35% 2 MASS DISTRIBUTION 6000000 ONLINE COLLEGE COURSE ENROLLMENT The transformation of content from print to digital formats streamlines distribu- 5000000 tion and enables learning to happen anywhere. 4000000 3000000 2000000 1000000 PERSONALIZED LEARNING New technologies generate individual learning profiles and custom solutions that ensure concept mastery. "Today, our schools must prepare all students for college and careers-and do far more to personalize instruction and employ the smart use of technology." -Arne Duncan, U.S. Secretary of Education » DIGITAL EDUCATION TODAY GROWTH OF ONLINE LEARNING ENROLLMENT 17.0% 14x Online learning enrollment growth rate vs. overall higher education enrollment 1.2% Overall higher education Online learning TEACHERS ARE EMBRACING ONLINE LEARNING TOOLS 93% of teachers believe online 95% of teachers believe that tools improve performance online tools engage students 93% 95% COST OF ELEARNING VS. INSTRUCTOR-LED TRAINING Cost for one-hour of instruction for 100 students s20,000 $17,000 S15.000 |40% $10,000 $9,500 $5,000 Cost savings by going digital Instructor-led training elearning » DIGITAL EDUCATION TOMORROW PROJECTED GROWTH IN BLENDED LEARNING BLENDED LEARNING COURSES, WHICH CONTAIN BOTH CLASSROOM AND ONLINE COMPONENTS, ARE GROWING RAPIDLY. 2010 30% 2014 47% 2020 98% People Using Blended Learning Solutions > THE FUTURE CLASSROOM The education community is already adopting new technologies which will work together to result in more effective learning solutions. LEARNING CLOUD COMPUTING ANALYTICS GAME-BASED LEARNING PERSONALIZED OPEN CONTENT MOBILE LEARNING LEARNING ENVIRONMENTS WHO'S DELIVERING SOLUTIONS TODAY? Educational publishers and degree-granting institutions are key to the continued growth of digital education. FACT: U.S. COLLEGES EDUCATE 19 MILLION STUDENTS EACH YEAR. FACT: 96% OF UNIVERSITIES OFFER AT LEAST ONE ONLINE CLASS. FACT: BY 2014, 81% OF POST-SECONDARY STUDENTS FACT: 75,227,000 STUDENTS WILL TAKE SOME OR ALL OF ATTEND K THROUGH COLLEGE THEIR CLASSES ONLINE. INSTITUTIONS IN THE U.S. FACT: IN 2010, 6.3 MILLION STUDENTS TOOK AT LEAST ONE ONLINE COURSE AT DEGREE-GRANTING POSTSECONDARY INSTITUTIONS. NON-PROFIT UNIVERSITIES WITH ONLINE DEGREE PROGRAMS Number of students enrolled Cornell University 10,611 Drexel University 9,229 Penn State University 8,524 Purdue University 8,114 Ohio State University 4,819 George Washington University 3.629 Arizona State University 3.000 Boston University 3,000 University of Southern California 2,500 Villanova University 2,117 2,500 5,000 7,500 10,000 20,000 MAJOR DIGITAL CONTENT PROVIDERS Number of students reached 66,811 122,702 k 500,000 1.8 MILLION Florida VirtualSchool 9 MILLION 2.7 MILLION connect PEARSON CENGAGE * Learning Sources: Ambient Insight | Sloan Consortium | American Association of School Administrators | Center for Budget and Policy Priorities INew Media Consortium | Xplana Livres Hebdo Publishers Weekly I BMO Capital Markets I Xplana | Gates Foundation I CIA World Factbook | Go-eknowle dge.com | Arizona State University | University of Alabama Devry University | Capella Education | Florida Virtual School I Michigan Virtual School I Mackinac.org | Trade.gov I Education-Portal.com I CorneliSun.com I Oartmouth.edu Knewton Internal Estimates Enrollment growth rate DO DO DO DO DO DO DO DO EDOE DOIE D EDOE De DO THE STATE OF DIGITAL EDUCATION EDUCATION IS A 7 TRILLION DOLLAR INDUSTRY THAT'S 57UX THE SIZE OF THE ONLINE ADVERTISING MARKET EQUAL TO (X THE GLOBAL MOBILE INDUSTRY MORE THAN THE GDP OF ITALY, FRANCE, AND THE UK - COMBINED The Internet continues to disrupt entire industries EDUCATION'S INTERNET MOMENT IS NOW COMMERCE MUSIC COMMUNICATION amazon.com facebook. iTunes EDUCATION РayPal napster twitter Vastly improved technology and increased student drop out rates have set the stage for disruption. ADVERTISING INFORMATION VIDEO Google Google NETFLIX AdWords d uble click You Tube WIKIPEDIA The Fre Enyclpdu » THE EDUCATION CRISIS 30% of students in the U.S. fail out of high school 33% of U.S. college students require remediation 46% of U.S. college students do not graduate 1 STUDENT DROPS OUT OF HIGH SCHOOL EVERY 26 SECONDS. > THE CHANGING LANDSCAPE From the one-size-fits-all model .to technology-enabled solutions customized for each student. and unprepared students... Three new trends in particular are bringing education into the modern age and helping to improve learning outcomes. DIGITAL TEXTBOOKS SALES DIGITAL CONTENT (AS PERCENT OF U.S. TEXTBOOK MARKET) 2010 1.5% Digital textbook sales are projected to grow rapidly over the next decade 2011 3% 2012 6% 2013 11% 2014 19.5% 2015 26% 2016 35% 2 MASS DISTRIBUTION 6000000 ONLINE COLLEGE COURSE ENROLLMENT The transformation of content from print to digital formats streamlines distribu- 5000000 tion and enables learning to happen anywhere. 4000000 3000000 2000000 1000000 PERSONALIZED LEARNING New technologies generate individual learning profiles and custom solutions that ensure concept mastery. "Today, our schools must prepare all students for college and careers-and do far more to personalize instruction and employ the smart use of technology." -Arne Duncan, U.S. Secretary of Education » DIGITAL EDUCATION TODAY GROWTH OF ONLINE LEARNING ENROLLMENT 17.0% 14x Online learning enrollment growth rate vs. overall higher education enrollment 1.2% Overall higher education Online learning TEACHERS ARE EMBRACING ONLINE LEARNING TOOLS 93% of teachers believe online 95% of teachers believe that tools improve performance online tools engage students 93% 95% COST OF ELEARNING VS. INSTRUCTOR-LED TRAINING Cost for one-hour of instruction for 100 students s20,000 $17,000 S15.000 |40% $10,000 $9,500 $5,000 Cost savings by going digital Instructor-led training elearning » DIGITAL EDUCATION TOMORROW PROJECTED GROWTH IN BLENDED LEARNING BLENDED LEARNING COURSES, WHICH CONTAIN BOTH CLASSROOM AND ONLINE COMPONENTS, ARE GROWING RAPIDLY. 2010 30% 2014 47% 2020 98% People Using Blended Learning Solutions > THE FUTURE CLASSROOM The education community is already adopting new technologies which will work together to result in more effective learning solutions. LEARNING CLOUD COMPUTING ANALYTICS GAME-BASED LEARNING PERSONALIZED OPEN CONTENT MOBILE LEARNING LEARNING ENVIRONMENTS WHO'S DELIVERING SOLUTIONS TODAY? Educational publishers and degree-granting institutions are key to the continued growth of digital education. FACT: U.S. COLLEGES EDUCATE 19 MILLION STUDENTS EACH YEAR. FACT: 96% OF UNIVERSITIES OFFER AT LEAST ONE ONLINE CLASS. FACT: BY 2014, 81% OF POST-SECONDARY STUDENTS FACT: 75,227,000 STUDENTS WILL TAKE SOME OR ALL OF ATTEND K THROUGH COLLEGE THEIR CLASSES ONLINE. INSTITUTIONS IN THE U.S. FACT: IN 2010, 6.3 MILLION STUDENTS TOOK AT LEAST ONE ONLINE COURSE AT DEGREE-GRANTING POSTSECONDARY INSTITUTIONS. NON-PROFIT UNIVERSITIES WITH ONLINE DEGREE PROGRAMS Number of students enrolled Cornell University 10,611 Drexel University 9,229 Penn State University 8,524 Purdue University 8,114 Ohio State University 4,819 George Washington University 3.629 Arizona State University 3.000 Boston University 3,000 University of Southern California 2,500 Villanova University 2,117 2,500 5,000 7,500 10,000 20,000 MAJOR DIGITAL CONTENT PROVIDERS Number of students reached 66,811 122,702 k 500,000 1.8 MILLION Florida VirtualSchool 9 MILLION 2.7 MILLION connect PEARSON CENGAGE * Learning Sources: Ambient Insight | Sloan Consortium | American Association of School Administrators | Center for Budget and Policy Priorities INew Media Consortium | Xplana Livres Hebdo Publishers Weekly I BMO Capital Markets I Xplana | Gates Foundation I CIA World Factbook | Go-eknowle dge.com | Arizona State University | University of Alabama Devry University | Capella Education | Florida Virtual School I Michigan Virtual School I Mackinac.org | Trade.gov I Education-Portal.com I CorneliSun.com I Oartmouth.edu Knewton Internal Estimates Enrollment growth rate DO DO DO DO DO DO DO DO EDOE DOIE D EDOE De DO