The report, released on Wednesday and available only to subscribers of the credit-rating agency, is called “Shifting Ground: Technology Begins to Alter Centuries-Old Business Model for Universities.” It says that offering free online courses will help well-known universities bring in new revenue, heighten brand recognition, and reduce operating costs. The report paints a much bleaker picture for smaller universities and for-profit colleges, however. Regional universities that chiefly attract students from surrounding areas could use MOOC’s to broaden their brand recognition and cut their costs, but they could lose market share to stronger universities over the long term, the report states. Using MOOC’s produced by other universities could also lead to faculty and staff cuts, said Karen Kedem, vice president and senior analyst at Moody’s and the report’s author.
http://chronicle.com/blogs/wiredcampus/moocs-could-hurt-smaller-and-for-profit-colleges-moodys-report-says/39864