The $5 billion Online Program Management industry, which helps universities develop and manage online programs, is undergoing a major shift, according to the latest OPM Market Insights report by Validated Insights. The study reveals a sharp decline in new OPM partnerships and a growing move toward fee-for-service models, changes that could reshape how higher education institutions expand their online programs.
Between 2021 and 2024, new OPM partnerships fell 47.4%, with a 42.1% drop since 2023, according to the report. Meanwhile, OPM-supported program launches fell 43.4% in 2024, returning to levels last seen in 2015. These declines suggest universities are re-evaluating their reliance on external providers for online program development.
Key trends in the OPM market:
- New OPM partnerships have declined significantly, with only 81 new partnerships formed in 2024—a level not seen since 2016-2017.
- More universities are moving to fee-for-service models, paying for specific OPM services instead of sharing tuition revenue. These agreements made up just 12% of new partnerships in 2014, but by 2024, they accounted for 58%, making them the dominant model in the market.
- Market consolidation continues. The 10 largest OPMs now account for 51% of partnerships and 69% of OPM-supported programs.
- Risepoint (formerly Academic Partnerships) is now the largest OPM provider, managing 11.9% of active partnerships and 30.5% of active OPM-supported programs.
The report highlights that fee-for-service has become the standard model for OPM partnerships. This change may allow institutions more flexibility but also requires them to take on greater financial risk and operational responsibility. For higher education leaders, these changes highlight the urgency of rethinking how they develop and sustain online programs.
With fewer full-scale OPM partnerships forming, institutions may need to:
- Strengthen in-house capabilities by investing in marketing, enrollment and instructional design teams.
- Seek specialized service providers that offer targeted support rather than relying on a single full-service OPM.
- Stay ahead of evolving regulations to ensure compliance with federal guidelines on third-party service providers.
Regulatory oversight is a growing concern. While the industry has avoided major legal challenges, recent guidance from the U.S. Department of Education warns colleges could face penalties if OPMs misrepresent admissions policies or program details.
The report outlines three key restrictions for institutions working with third-party service providers. First, admissions representatives from external providers cannot say they work for the institution. Second, they cannot refer to themselves as “academic advisors” or “counselors”, making it clear they are not part of the school’s faculty or staff. Finally, institutions cannot market their online programs as identical to their in-person offerings, ensuring transparency for students.
As regulatory scrutiny increases, the report emphasizes that universities must take a proactive approach to ensure compliance and avoid potential risks.
