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"For the vendors, when this model works they get a far higher revenue per student that would have been possible with platforms sales or other fee-for-service approaches. As I described in a post about 2U, that company makes $10k - $15k per student per year, whereas an LMS vendor might make $20 per student per year. While 2U is the high end of the market and not all OPM vendors get that kind of revenue, we are talking about several orders of magnitude difference per student."

"Several weeks ago the University of Florida Online program opened for the Spring 2014 semester, accepting 600 transfer students, and the new program will accept Freshmen starting August 2014. This announcement comes just 2 years after the Florida legislature commissioned a study from the Parthenon Group on how to best leverage online programs in the state, and this program is probably one of the highest profile new online programs in the US within the past few years (along with California's online initiative, Open SUNY, SJSU / Udacity and GaTech / Udacity)."