×

Russian and Global Online-Education Market: Segment - Mass Online Courses

December 2014

Analytical Report (full version)

Request cost of the full version of the study: news@json.tv

Analytical Report (full version)

Russian and Global Online-Education Market: Segment - Mass Online Courses
Russian and Global Online-Education Market:  Segment - Mass Online Courses
December 2014

Russian and Global Online-Education Market: Segment - Mass Online Courses

December 2014

To register or Log in, to download the file

Download file

+7 926 561 09 80; news@json.tv

Write, call, if you have questions

1. Introduction

 

Despite the novelty of online-education, this business has a complicated structure and includes different sub-groups:

 

  • B2C-segment:
  • Massive open online-courses with interactive participation - MOOCs segment, which is aimed at unlimited number of students;
  • Video, including in YouTube, social networks, etc.;
  • Skype-education;
  • Mobile apps
  • B2B-segment:
  • Corporative MOOCs aimed at employees or advance trainings;
  • Individual educational solutions.

 

The present Report focuses on mass online-courses for individuals and do not cover the corporate segment. J’son & Partners Consulting’s experts identify two sub-segments: courses according to the timetable (Scheduled) and without one (Non-scheduled) – free at any time. Such distinguishing is acceptable and for the foreign market.

 

2. Business Models

 

Content is the key product of educational platforms. There are several ways for its production:

 

  •       Broadcast of the ready-made content: such aggregators as Uchinovoe, BeSmart etc.
  •       Adjustment of the content. For example, Lendwings is translating popular courses from American Udemy platform.
  •       Use of user’s content. For example, records of Zillion webinars.
  •       In-house production, such as Eduson, Universarium, Uniweb and others.

 

The prevailing tendency – is the decrease of aggregators’ sites popularity and increasing demand on selected, of high quality and recorded courses.

 

Key Monetization Methods

 

  •       Sale of programs containing range of courses (Uniweb, Eduson) – average price of $200-500.
  •       Sale of video (Besmart) – till $10.
  •       Sale of course (Web.University, Udemy) – till $100.
  •       Sale of subscription for a period (Netologia, YaKlass, LinguoLeo) – $20-25 per month.
  •       Sale of certificates by free course provision (Cousera) – $50-80.
  •       Sale of additional services – consultancy, check of knowledge, etc. (Earlydays) – $100-300.
  •       Sale of users’ data to advertisers for targeting advertising (ResearchGate).
  •       Analytics’ processing by uploaded content and selection of necessary researches for additional price (Academia.edu).
  •       Provision of additional paid services, for example, storage of material and organization of platforms for discussion for universities (Mendeley).
  •       Organization of educational, HR and PR platforms for the company (Udacity).

 

The most perspective are hybrid models, they offer blended learning – mix of online and offline education. For example one of the 3 largest American MOOC-platform Udacity transited on this model recently. Starting in 2014, the platform offers paid courses with constant help and supervision, check of home tasks, feedbacks and provide diplomas as alternative to free self-educational courses

 

Example: Course: App development based on Android cost $300, duration – 2 month.

 

The course was developed by Google in order to popularize Android and development of new apps. It includes feedback by projects, help of teachers and certificates.

 

Statistics

 

Example of the course based on edX platform:

 

Course: Circuits and electronics (Spring 2012)

 

  • Lectures were organized as 14 weekly sets per 2 tracks. Track is 10-20 videos per 5-10 min. All videos are connected to exercises which need to be solved and answers provided. Some of exercises can be solved with the help of logic (intuition), some should be provided on the paper. 
  • Sets are being published each week and students have around 3 weeks to study the materials, meanwhile, 2 more sets are being published within these 2 weeks.
  • Exams are being published after 7th and 14th week. They are available around 4 weeks. Theycanhave 3 attempts topass them.
  • Two certificates are being provided – with and without grade. Each certificate has a link, by which you can check certificates’ validity.
  • Weekly course volume – from 5 – 20 hours per week, depends on the level

 

Global Online-Education KeyTrends

 

  •    Micro courses – there is a decreasing trend in the average time per video – till 1-3 min.
  •    Gamification – gamification instruments are being used in order to solve the key platform’s task– to keep users’ attention.
  •    New technologies – a lot of experts and market analysts consider the development of additional reality technologies as additional market drivers.
  •    B2B – corporate segment is paying more and more attention towards the industry. Large corporations are both clients and service providers.
  •    Applied science – there is an increasing trend in the number of platforms, which provide applied knowledge and experience. This tendency is especially popular in Russia.

 

Russian Market

 

Despite the fact that Russian e-education market has started its development one year later than largest global platforms (2013), first large projects had already been here 5 years ago. At the moment, there are over 50 large projects with thousands of users, according to J’son & Partners Consulting’s estimations. Market leaders have millions of users, for example – Lingualeo service – over 6 million users from Russia.

 

Key Data and Facts:

  •       Experts market estimation in 2014 ~ 400 million RUB;
  •       Total number of students – several million people;
  •       Market growth in comparison with 2013 – 70-100%;
  •       Number of registered users on the largest MOOC-platforms is dozens thousands, in some cases this number is higher than 100 thousand;
  •       According to market participants’ data, the level of conversion is 1-4%, medium data ~ 2%;
  •       Courses cost varies from several thousand Russian rubles till dozens thousands, depends on the topic, term of the course and specification;
  •       Over 50 platforms operate on the market;
  •       7.2 million of Russian people at least once studied online;
  •       78% usersstudyEnglishlanguage;
  •       Platforms, which provide course for USE and Programming, are very popular;
  •       Paid model prevails.

 

Market Potential

 

J’son & Partners Consulting’s analysts have estimated the volume of adjacent markets in order to evaluate the online-education market potential in Russia: segment of tutors and market of corporate education. According to the data, total tutors market in Russia is being estimated in 26-30 billion RUB, while corporate education segment volume is more than 70 billion RUB. Total volume of both segments is about ~100 billion RUB. J’son & Partners Consulting: share of online-education in these segments can reach 5-7% by 2018, which will be not less than 6-8 billion RUB, major share – will be in corporate segment.

 

Below you can find the map of Russian Online-Education Market by Main Directions.

 

 

Paid model is a peculiarity of Russian e-education market. Such paid model has been dominating from the beginning, while European markets developed from the free model. There are several free projects on Russian market, but not that much. The most significantones are:

 

  •       Lektorium (www.lektorium.tv) – non-commercial academic education project, launched in 2009, offers courses by MOOC model. The project is being financed by FPPI and private investors;
  •       Universarium (www.universarium.org) – non-commercial academic education project, launched in December 2013 by MOOC model with the support from Russian Informational Agency Nauka and ASI;
  •       UniverTV (www.univertv.ru) – aggregator of online courses.

 

Russian e-education market attracts venture investors. Russian projects allocated around 15 million USD during last 2 - 3 years. Main examples of investments are listed below.

 

 

Profiles of the Largest Market Players

 

Selected (random) profiles of some Russian platforms are being presented in this paragraph.

 

4.1.      Scheduled Courses

 

4.1.1.         Netology Group

 

The Group consists of two platforms – Netology and Foxford. Below you can find platforms’ profiles. Estimated data: Consolidated revenues were 50 million RUB in 2013, forecast for 2014 – 110 million RUB.

 

4.1.2 Foxford

 

4.1.3 Uniweb

 

4.2.      Non-scheduled Courses

 

4.2.1.         Eduson

 

 

 

4.2.2 HTML Academy

 

 

4.2.3.         Maximum

 

 

5. Global Market

 

For a long time online-education market was on the early stage of development. Despite the efforts and first platforms, which appeared in 90s and first large project in 2002 (MIT OpenCourseWare), the actual market growth happened in 2012 with the launch of 3 major platforms: Coursera, EdX and Udacity.

 

 

Despite the late start, e-education became very popular in a short period of time; e-education market had attracted a lot of attention from investors. Around 20 million of people use Top 10 global educational portals. Investments in e-education are over 300 million USD.

 

According to Docebo data, global e-education market volume is over 40 billion USD. According to the forecast, this amount will be over 50 billion USD by 2016. Global geographical market structure is being provided below.

 

 

6. Global Market Participants’ Profiles

 

This block presents profiles of some global educational platforms.

 

6.1.      Scheduled Courses

 

6.1.1.         Coursera

 

 

6.1.2.         edX

 

6.1.3.         Udacity

 

6.2.      Courses, available at any time

 

Web-sites with lectures and video libraries operate much longer than MOOC-platforms and provide variety of topics and types of content. All these resources offer courses, which do not depend on certain time and do not provide tutors’ assistant. Some of them also offer paid training with certificates (Lynda), some – free video lessons by any topic (Khan Academy).

 

6.2.1.         Udemy

 

6.2.2 Lynda

 

 

6.2.3.         Khan Academy

 

7. Experts Opinion

 

In terms of the research, J'son & Partners Consulting’s specialists have surveyed key market participants and found out their opinion regarding the online-education development in Russia.

 

Maxim Spiridonov

 

Netology Group, General Director

 

1)      What is online-education market in Russia at the moment?

 

Market passed the early stage of development and now is getting its form. There are niches, where monetization is possible, and, as a result – business development; leaders in these niches feel more confident on the market. And from the point of market perspectives and potential opportunities, we are in the beginning of the journey. A lot of experts call online-education as "next big thing" and expect niches in their "Yandex, Google and Facebook". We, as market “practicians”, also look very positive towards the future. 

 

 2)      What are the main trends now?

 

Fast increase of market players. The appearance of targeted projects. The formation of key online-education directions, where market players see more perspectives for today. Education in the sphere of foreign languages, special targeted courses, additional middle education, corporate education.

 

 3)      Which main market growth factors can you name?

 

The coverage of larger digital audience facilitates the growth of the segment; users “receive” habit to work and to be entertained online. The readiness to pay by users also helps the niche’s development, in particular, to pay for digital content.

 

Mikhail Myagkov

 

Maximumtest, General Director

 

1)           How do you estimate market development now?

 

Current market is on the way to create good quality/online-oriented products and education programs, and its monetization. Today users are motivated to purchase online services.

 

Online programs’ monetization is being based on users, for whom courses have a certain value and they cannot get these knowledge in any other format.

 

2)           What future do you see for the market?

 

Market development in the future will be based on:

 

  • Creation of well-known brands, which is a real value for users  
  • Creation of online programs, which transfer into online world best practices of the traditional education by mixing with unique technological advantages, such as (1) personalization and adjustment (2) automated analysis of students’ success and (3) instruments of content visualization
  • Basic content will be available for free, but packages, which include quality content, platform and effective communication methods, will be popular in paid form also.

 

In general: we consider that market will be developing, but only some models will “survive”, from the point of commercialization – this will be “armor” and programs with proved results.

 

Alexey Simonenko

 

HTML-Academy, Web-evangelist

 

How can you describe the development of online-education in Russia?

 

Online-education in Russia is developing by different directions for several years. The quality of provided online services is becoming more and more important. Just the video with lecture is not enough; users want to check their knowledge at once. That is why more interactive courses will appear in the coming years. The other trend: more start-ups, which don’t have their own content and mostly aggregate foreign products, will be closed.

 

You can watch analytical programs about online-education market in Russia via the JSON TV portal: www.json.tv

 

8. Content of the Full Version of the Report

 

  1. Introduction
  2. Sources and Methodology
  3. Definition and Online-Education Platform Typology
  4. Business-Models and Monetization Models – Online-Education Market

 

Block 1. Analytical

  1. Global Online-Education Market Overview

5.1.Online-education market volume and dynamics, $, 2010-2013, forecast - 2014-2016

5.2.Geographical structure of online-education market, 2013, forecast – 2016

5.3.The number of students in 2010-2013, forecast 2014-2016

5.4.Monetization models by largest platforms

5.5.Profiles of the global platforms:

5.5.1.   Coursera

5.5.2.   Udacity

5.5.3.   MIT Open Courseware

5.5.4.   Edx.org 

5.5.5.   Khan Academy

5.5.6.   Udemy

5.5.7.   Lynda

5.5.8.   Others

5.6.Market drivers and deterrents

  1. Russian Online-Education Market Overview

6.1.Online-education market volume and dynamics, $, 2010-2013, forecast - 2014-2016

6.2.Geographical structure of online-education market, 2013, forecast – 2016

6.3.The number of students in 2010-2013, forecast 2014-2016

6.4.Monetizationmodelsbylargestplatforms

6.5.RussianPlatformsmap

6.6.Profiles of largest Russian platforms:

6.6.1.   Netology-Group

6.6.2.   LinguaLeo

6.6.3.   Lektorium

6.6.4.   Universarium

6.6.5.   Eduson

6.6.6.   Others

6.7.Short overview of key market players by directions:

6.7.1.   Academic courses

6.7.2.   General profile courses

6.7.3.   Pre-school courses

6.7.4.   Courses for pupils and students

6.7.5.   Foreign languages courses

6.7.6.   Courses for programmers

6.7.7.   Courses – USE

6.7.8.   Users’ contentaggregators

6.7.9.   Corporate segment

6.8.Brief analysis of Russian legislation in the sphere of online-education

6.9.Market drivers and deterrents

 

Block 2. Corporate Segment

  1. Definition of Corporate Online-Education, its typology. Learning Management Systems (LMS)
  2. Corporate Online-Education Business-Models and Monetization Strategies

2.1.Global Market

2.1.1.   Market volume 2010-2013, forecast -2014-2016

2.1.2.   Geographical market structure 2013, forecast till 2016

2.1.3.   Largest online-corporate universities

2.1.4.   Main trends and tendencies

2.2.Russian Market

2.2.1.   Market volume 2010-2013, forecast - 2014-2016гг.

2.2.2.   Largest online-corporate universities

2.2.3.   Main trends and tendencies

  1. Main LMS developers in Russia and in the world

 

Block 3. Marketing Block

  1. Current structure of online-course by discipline in the world
  2. Social-demographic profile of online-courses users
  3. Peculiarityofusersbehavior

3.1.Choose the course

3.2.Study process

3.3.Passing exams

  1. Instrumentstoincreaseusersloyalty

4.1.Gamification

4.2.Mobile apps

4.3.Certification

4.4.Hybrid models, combining offline and online

4.5.Others

  1. Experts interview with market players
  2. Conclusions

 

Interviews and TV-Programs with industry experts had been used during preparation of the Report:

 

Web.University, Konstantin Antonevich:

http://json.tv/ict_video_watch/buduschee-gde-to-ryadom-gost-studii-konstantin-antonevich-webuniversity

 

Netology, Maxim Spiridonov:

http://json.tv/ict_video_watch/buduschee-gde-to-ryadom-maksim-spiridonov-onlayn-obrazovanie-v-rossii-i-mire

http://json.tv/ict_video_watch/ekspertnyy-razgovor-vypusk-1-maksim-spiridonov-onlayn-obrazovanie-v-rossii

 

NewTutor, Svetlana Pavlova:

http://json.tv/ict_video_watch/buduschee-gde-to-ryadom-svetlana-pavlova-newtutor-rynok-onlayn-obrazovaniya

 

GlobalLab, Tatiana Krupa:

http://json.tv/ict_video_watch/buduschee-gde-to-ryadom-tatyana-krupa-globallab--20141022073243

 

 

We would like to express our gratitude and respect to the following companies and its representatives:

 

Maxim Spiridonov, Netology Group,

Konstantin Antonevich, Web.University,

Svetlana Pavlova, NewTutor,

Tatiana Krupa, GlobalLab,

Mikhail Myagkov, Maximumtest,

Alexey Simonenko, HTML-Academy,

Alexey Pashenko, BeSmart.

 

for cooperation and participation in the data provision, preparation of the current Overview and TV-Programs about online-education

The present Report focuses on mass online-courses for individuals and do not cover the corporate segment. J’son & Partners Consulting’s experts identify two sub-segments: courses according to the timetable (Scheduled) and without one (Non-scheduled) – free at any time. Suchdistinguishingisacceptableandfortheforeignmarket.