Big Investments Being Made in Online Education

Investing in online education has become big business. Since the beginning of September, news reports have surfaced of $5.7 million in venture capital going to a Chicago-based education startup called eSpark Learning. At the same time, the Canadian firm Desire2Learn reversed its strategy of not using external funding and raised $80 million.

eSpark, described by its founder and CEO as the Pandora radio for education, targets students in grades K-8. Students are given a custom playlist of apps and then asked to rate how much they like the app or how much they are learning, similar to the way Pandora listeners rate songs played, according to an article in TechCrunch.

Desire2Learn, which develops cloud-based learning systems, changed its funding strategy, in part, to keep up with the rapid pace of change in the online learning market. Blended learning programs, personalized learning, and open online courses have all contributed to that growth. Desire2Learn has responded by hiring 200 new employees in the past year, according to a report in Reuters.

Finally, the online educational startup Straighterline recently announced it will begin allowing college professors to attract online students to their for-credit courses through Straighterline and even set their own price for the course.

The company landed $10 million in investment capital last April and plans to use the funds to expand its marketing to institutions across the country. It already offers online learning in nearly 40 courses for a fee of $99 a month and a $39-per-course registration fee. Its long-term goal is to create a platform where students can pick and choose courses created by professors for credit.

“The idea is the student has those choices,” Burck Smith, founder of Straighterline, told The Baltimore Sun. “It’s really an experiment in creating a market for professors and students to meet up.”

New Study Shows Readers' Format Preferences Vary

The percentage of consumers are buying titles in digital formats has fallen, but more people are also saying they have no preference when it comes to the format of a book, according to the latest Book Industry Study Group e-book reading survey.

Consumer Attitudes Toward E-Book Reading reports the portion of consumers who “exclusively or mostly” buy e-books fell from nearly 70% in August 2011 to 60% just nine months later. At the same time, the percentage of respondents who either had no preference between e-book or print formats, or who bought some of both, went up from 25% to 34%, signaling that consumers have become more comfortable with a variety of reading formats.

The study found that ownership of the Amazon Kindle Fire has increased from 7% to 20% of respondents from December 2011 to June 2011, and that the use of multifunctional tables as a primary reading device is growing at about the same pace that the preference for dedicated e-readers has dropped. Preference for the Kindle as a primary reading device fell from 48% in August 2011 to 35% in May 2012, while black-and-white and color versions of the Nook e-reader slipped from 17% to 13% over the same period.

The Apple iPad remained steady in the ownership survey at 17% from August 2011 to May 2012, but now trails the Kindle Fire in the ownership category. The number of respondents who use the iPad as an e-reader also dipped from 10% to 9%.

While the iPad may have moved into second place in the BISG consumer survey, Student Monitor found that 66% of respondents to its survey of 1,200 college students say that the iPad was the “in” device on campus, even though fewer than 12% actually own one. At the same time, the Student Monitor research showed that 88% of students own a laptop computer, 19% have desktops, and just 10% say they own a tablet.

The research also found students’ preference in course material formats may be shifting. Printed textbooks continue to dominate sales, but students saying they “prefer traditional textbooks” has declined from 50% two years ago to 39% in the most recent Student Monitor report.

Study Shows iPad Users Dominate Web Traffic

Pundits have generally been positive about the new Microsoft Surface, but a new report from the ad network firm Chitika says the Apple iPad is still the king of the hill by a wide margin when it comes to Internet traffic. The firm’s new study shows that 91% of media tablet web traffic comes from iPad users, although it dropped more than three percentage points from a similar study the firm conducted in May.

The data for the survey comes from impressions on the Chitika ad network from June 4-10, 2012. Because the Apple totals were so large, the firm compared other devices to 100 iPad impressions and found the Samsung Galaxy was a distant second at 1.94% of the web traffic. The Barnes & Noble Nook was fifth overall, accounting for 0.85% of the traffic, a performance that allowed it to move ahead of the Amazon Kindle Fire.

However, Chitika predicts the share of web traffic will continue to decline for Apple as more devices, such as the Surface, come to market, just as it did in the smartphone market.

“The Apple iPhone started out as a highly differentiated product, yet over time, its competitors such as Motorola and Samsung using the Android OS have begun to eat away at their market share,” the ad firm told The Mac Observer. “Even though (Apple) still remains dominant, the disparity is not the same as it used to be and we believe the tablet market will follow a similar trend.”

At the same time, the OnCampus Research study, Student Watch 2012: Student Attitudes and Perceptions, reports that just 17% of the students it has surveyed even own a dedicated e-reading device and that 62% say they have no plans to buy one any time soon.

iPads for less than $5 a day on Campus

An article in Campus Technology recently noted that with a grant from the Department of Education Fund for the Improvement of Post Secondary Education, several schools in California began a digital device rental program allowing students to rent devices ranging from iPads to digital cameras. Student at California State University Bay can now rent iPads for $25 a week, $120 for a semester, and a loaded Macbook for $150. The rental program is modeled after the library system and charges apply for late returns.

Looks Like Tablets Are Ready for School

The Apple iPad pilot programs on college campuses have been completed and Vineet Madan, vice president, McGraw-Hill Higher Education eLabs, says the device passed the test. In fact, he offers six reasons why tablet computing is ready to take the classroom by storm.

Versatility is the first reason Madan cites, noting that enhanced e-books provide text, video, and audio, making for a more integrated learning experience that is more engaging for students. In addition, the iPad allows students to highlight and jot notes in the margin, just like in a printed book.

Students’ growing familiarity with touchscreen technology is another reason to think tablets are ready for the classroom, according to Madan. The tablet also appeals to students because it is thin, lightweight, and turns over much quicker than a laptop with much longer battery life, while innovative software is being developed specifically for tablets to render them compatible with online teaching and learning platforms.

Tablets also align with cloud-based computing solutions, which are becoming more popular on campuses because of their portability and constant connection to the Internet. Finally, Madan reminds readers that tablets are much easier to acquire now and increased competition from Android OS devices will only drive prices down on all tablet models.

Video: IPads for Textbooks in Singapore

An interesting video detailing the adoption of iPads to replace textbooks at a school in Singapore:

iPads Making a Splash On Campus

The Apple iPad is making quite a splash on college campuses across the nation. Buena Vista University, Storm Lake, IA, plans to provide the tablet computer, along with a laptop computer, this fall, according to an article in Campus Technology.

“These are all important to effective learning, which is really the most important thing,” said Jamii Claiborne, assistant professor of media studies. “For students and faculty in media, the iPad means we can gather, create, edit, publish, promote, and then consume what we make—all from one small, mobile device. That’s exciting. Students and I have all been searching for relevant apps and telling each other about them. Together, as partners, we're figuring out how to use this new technology effectively.”

Then there’s experience at George Fox University, Newberg OR. The school, one of the first to provide students with laptop computers, jumped on the iPad bandwagon when the device hit the market last year. Now administrators there are ready to pull the plug on the program according to another Campus Technology article.

Students already show up on campus with smartphones in their hands and have begun to have table computers in their backpacks. So administrators at George Fox are looking at ending the giveaway program in favor of beefing up the school’s wireless network and to better accommodate the printing needs of the campus.

“Right now, we’re throwing tremendous amounts of resources into this whole idea of video management with the ultimate goal of developing more collaborative classrooms that are enabled with state-of-the-art technology,” said Greg Smith, chief information officer at the school.

Australian Pilot Program Recommends iPads in the Classroom

Trinity College, University of Melbourne, has released a report on the results of its
Step Forward iPad Pilot Project, which saw the iPad “test-driven” in classroom settings by select staff and students in the Trinity College Foundation Studies (TCFS) program, a one-year course that qualifies about 700 international students annually for undergraduate entry into the University of Melbourne and other Australian universities.

Issued iPads with wireless and 3G capability, faculty in nine academic disciplines and 44 students, along with some IT staff and administrators, evaluated the Apple device to determine whether its wider adoption would make sense for TCFS. Participants also tested several other devices, including laptops, netbooks, e-readers, and a Samsung Galaxy tablet with Android OS.

The results were overwhelmingly positive for the iPad. While noting that the device is an “enhancement” rather than a replacement for desktop/laptop computers or other educational technologies, 80% of students and 76% of staff said they would recommend the iPad for use by their peers at Trinity.

“I found the iPad helped us experience the world of learning from a greater range of vantage points and gave us more opportunities to meet individual learning needs,” said one participant.

Quality audiovisual equipment in the classroom, along with agile IT support, were cited as necessities to make the best use of the tablet.

The report’s final recommendations include allocating iPads to all TCFS staff this year, dedicating IT staff to iPad support, and rolling out iPads to all TCFS students in 2012.

Tablet wars: IPad vs Xoom

David Pogue, NYTimes Technology blogger frequently has interesting posts. Last week he had an interesting post reviewing the new Motorola Xoom tablet -- a potential competitor to the iPad. The article covers the features of the Xoom as they compare to the iPad - -from price and cameras, to connectivity, speed and display quality.

The Xoom is also one of the first (the first??) tablet to use Google's new 'Honeycomb' software. David's review is interesting -- pointing out both the plusses and minuses of the first iteration of the Android-based tablet operating system. Always interesting -- the specific apps discussed in comparison include e-book reading.

If you are interested in the tablet market, Pogue's piece is a good one to read for product comparison.

Apple Keeps Grip on App Store Purchases

The New York Times’ report that Apple declined to approve the Sony Reader e-book app because in-app sales wouldn’t go through Apple sparked much hand-wringing in tech circles. Many felt Apple’s move would encompass not only the Sony Reader app, but also Kindle and Nook apps for the iPad, iPhone, and the iPod touch.

Then, blogger John Paczkowski of the Wall Street Journal reported an official statement from Apple claiming no change has been made to its guidelines for developers, but that it will now require apps to offer customers the ability to purchase items both outside the app and within the app.

The change is already in place for customers who buy through iTunes, allowing Apple to earn a cut for facilitating the purchase without forcing all content to be bought through iTunes. This means Amazon, for instance, can still sell content through its web site or Kindle device, but iOS Kindle app users will have to sync purchases to their iPhone, iPod touch, or iPad and Apple will get a cut of the proceeds.

The question now is how will Amazon, Barnes & Noble, and Sony respond? It’d be hard for a company such as Amazon to back away from the iOS platform now, particularly with its “Buy Once, Read Everywhere” promotional campaign. It would also be difficult to build a new sales site that allows customers to buy both from Apple and Amazon, or from Apple alone.

Sony posted a note on its web site saying it’s trying to find other ways to work with Apple, including avoiding the App Store commission altogether.

iPad pilots to replace textbooks

The iPad pilots at University of Notre Dame, where professor Corey Angst is experimenting with replacing printed books with the devices, continues to get press coverage. This week there are two items worth reading about the experiments:

An article in the Chronicle of Higher Ed

A Wall Street Journal blog posting

While a fair number of institutions are experimenting with the iPad and comparable technologies, Notre Dame continues to gather more attention. The WSJ posting had a link to a video from Corey's class:

Three R's begin with i

While watching the list of school closings this morning, there was an interesting story on about the use of iPads in one of the local schools. Each of the students in the fifth grade class has been given an iPad. Here are a couple of the more interesting quotes from the story:

The teacher [Bizan] says iPads have improved student performance in spelling and math and student attendance is up.

"It makes people want to learn. It makes people want to come to school," said Rachel Lyman, a fifth grader.

Bizan says about 75 percent of his instruction takes place on the iPad now and he expects in the not-too-distant-future that'll be 100 percent.

Of course, my favorite quote -- or perhaps the one which is most telling, is the following from the classroom teacher:

"Five to six years from now, or 10 years from now, textbooks, I see them being gone and being on some kind of device," said Bizan.

You can find the story transcript or watch the video clip online on our local news station's site.

iPad pilots at CDI College and the University of Houston

An article from Campus Technology discusses the iPad pilots that are occurring at CDI College in Canada and the University of Houston in Texas. At CDI College, the iPad pilot aims to help students in the nursing and business programs develop technology skills for their future roles in the workplace. At the University of Houston, professors have developed an iPad app for a communications course that includes: learning modules, video lectures, course materials, presentations, tutorials, and simulations. The pilot aims to obtain feedback for a program that helps faculty integrate technology into the curriculum. In addition, a survey will be conducted to evaluate the impact of the devices on learning, class attendance, and study habits.

More information about the pilots can be found here.

Apple and News Corp to create digital newspaper for iPad only

According to a posting on Mashable.com, Apple and News Corp are preparing to launch The Daily, a news publication that will only be available via an app on the iPad. The publication is expected to launch in early 2011 and could provide consumers with a new type of reading experience that incorporates video and utilizes the iPad’s sophisticated technical capabilities. This could give the publication capabilities beyond what other newspapers and websites currently offer.

Will the second generation iPad be released early next year?

A recent article from MacNewsWorld discusses the rumors about when the next iPad will be released and the capabilities that it will include.

iPads assist disabled users

Here is an inspiring story and video from The New York Times about a boy with a degenerative disease that has been able to interact with an iPad. His mother says it is the first device that they have had success with and it is far cheaper than other devices they have tried. In addition, because the apps are inexpensive they can experiment to see which ones are the most beneficial.

The article notes that there are studies in progress to determine how effective the iPad is for people with disabilities. In the months since the iPad has been on the market, it has already become a popular device for assisting the disabled but the usefulness of the device depends on the specific disability. In the coming months, we can expect that additional apps will be created and added to the app store to assist disabled users.

Resource for iPad Pilot info

Jim Siegl, a Technology Architect from Fairfax County Public Schools, and Eric Lai, a blogger for ZDNET, have put together a website to keep track of all the iPad pilots that are occurring at Higher Ed institutions and K-12 schools. This website is a great resource and it includes details about the pilots, the number of devices in the pilots, and links to associated articles. The website also features information for other industries that are experimenting with iPads.

You can view the website here.

Results from NACS’ OnCampus Research study about e-books and e-readers

NACS’ research division, OnCampus Research, recently conducted an e-book and e-reader survey to find out how much college students are accessing e-books and the devices that they are using. Highlights from the report can be found here.

The study produced many interesting findings. In regards to e-book purchases, 13 percent of college students said that they purchased an e-book within the past three months. Of the 13 percent, 56 percent said that the primary reason for their purchase was that it was a required course material for class.

In regards to devices, eight percent of college students currently own an e-reader or an Apple iPad. Of the 92 percent that do not own a device, five percent plan to make a purchase in the near future and another 36 percent are unsure if they will buy one. The primary reason that 42 percent of students gave for not wanting to purchase a device was that they prefer print books. An additional one-third of the students said that they were not sure how an e-reader device would benefit them and 18 percent said that the device was too expensive or they were waiting for prices to drop.

These stats show that interest in e-books and e-readers is growing but the majority of students still prefer print or do not yet see the need for a device. This is likely to change as the technology progresses, the prices for e-readers come down, and the benefits are realized. In addition, the students in college today tend to have a lower preference for digital than the students a few years younger. As these students enter college in the next few years, we will likely see a significant change in preferences.

E-readers rank fifth on holiday gift wish list

According to a study by the Consumer Electronics Association, this holiday season spending on consumer electronics gifts will reach historic highs despite an overall decline in gift spending. In fact, three of the top five items on holiday gift wish lists of adults are for consumer electronics. E-readers made the list at number 5. The full list includes:

1- Peace/Happiness
2- Notebook/Laptop
3- iPad
4- Clothes
5- E-reader

Digital Happenings

While the blog highlights many of the digital happenings affecting our industry, there is often more going on than we have a chance to cover. Here are some links to interesting articles from the past few days.

• Apple sold 4.19 million iPads last quarter bringing its total sales to almost 7.5 million since April. Interestingly, the iPad sales last quarter were greater than the sales for the entire line of Macintosh computers which also hit a record high at nearly 3.9 million units. Some analysts are now predicting that Apple will sell up to 40 million iPads next year.
• According to an article from Adage, Apple has also expanded distribution for the iPad to retailers such as Target, Walmart, Sam’s Club, and Best Buy. Previously, the iPad was available at 300 Apple stores and now it will be available at 8,000 stores across the country.
• A recent survey of students by the Associated Press and mtvU found that 57 percent of students said that life without computers and cell phones would be stressful but 25 percent said it would be a relief.
• An article from The New York Times says that Sharp is scaling back its laptop operations to focus on tablets. Sharp plans to launch 5.5-inch and 10-inch screen Android tablets in December. In addition, Sharp will launch an e-book store that will give users access to 30,000 e-books, newspapers, and magazines. A second article from MacWorld provides more information about the tablets.
• According to a TechCrunch article, Amazon says that it continues to sell more Kindle books than print books. Amazon says that it has sold more than three times as many Kindle books from January to September of this year than it did for the same nine months of 2009. Amazon also says that sales for its latest Kindle device have already surpassed total Kindle device sales from the holiday season last year (October through December 2009).
• A recent article from Publishers Weekly discusses the challenges associated with formatting e-books.