Salient to Investors:

Richard Lyons at Berkeley said:

  • Half of US business schools could be out of business in 5 to 10 years because more top MBA programs will start to offer degrees online. Lower-ranked business schools are the most vulnerable.
  • Education technology has the potential to make the proximity factor go away, taking some high-margin students with it.
  • The average full-time student at an elite school gets a 25 percent discount on tuition, while at part-time and EMBA programs, the average student pays closer to sticker.

Online education has mostly shed the stigma of association with such down market institutions as DeVry and University of Phoenix, and as its legitimacy grows, Wharton, Stanford et al are likely to offer online degrees.

Ash Soni at IndianaUniversity said online MBA programs are not yet siphoning choice students from campuses.

Robert Lytle at Parthenon said for-profit MBA programs have been the early losers as more traditional universities go online.

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