OPM partnerships decline, forcing higher ed to fee-for-service
Michelle Centamore
March 4, 2025
As universities explore new ways to manage online programs, fee-for-service agreements are emerging as the leading model. With its growing popularity, colleges must navigate the benefits of flexibility alongside increased financial responsibility.
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.
