This morning,I got a call from a Consumers Digest Reporter for an upcoming report on educational software. We last talked in 2009, whien the landscape was very different. At the time, I was working on a project for one of the pre-eminent makers of educational cd-roms. Today, I'm not sure there is such a thing as a "pre-eminent maker of educational cd-roms. The most interesting digital educational content is online, or in the form of apps. Much of it is free today.
People are still willing to pay for 3 types of educational content:
1. Content with proven results. If you can show me that your app will help my child learn to read, help me pass the bar exam, or teach my mom to speak Spanish like a native, I'll pay you.
2. Content with highly engaging user interface. Great interaction design will keep people online longer, and people are willing to pay for things they love to do. The concept of "gamification" is pervasive across all kinds of content, but especially in educational content, as a means of engaging students in the learning process. And no, automated flashcards do not qualify as "great interaction design"
3. Truly unique content. There is still a place for high quality educational instruction. If you have a truly differentiated methodology for teaching, or have content that is not available anywhere else, people will pay. The problem is that most content developers believe that just because they put a lot of effort into developing the content, that the content is unique and in demand. If you wonder if your content is truly unique, ask your customers. They'll tell you.
The decline in cost to create content, and cost to distribute content have led to a devaluation of much of the educational content avaialble today. The "not-for-free" bar is a lot higher than it was, because it's just so darn easy and cheap to create useful content. Sites like Khan Academy, with their huge library of instructional videos, educational apps on the AppStore, and the proliferation of free podcasts are all part of this huge trend in free content.
People are still wiling to pay for more sophisticated and differentiated technology that solves a purpose, saves money or creates efficiency. While people are not willing to pay for simple, tactical apps like flash cards or vocabulary games, megatrends in mobile technology, Cloud Computing
, and self-publishing have created a whole new paradigm for learning. There are tremendous opportunities for creative, differentiated learning tools reimagine how people can learn. Some examples of areas where companies are making money with educational technology include broad based solutions for school in support of academic curricula and schedules. Many schools now require or even provide laptops and tablet devices to all students–which opens up huge demand for educational software and applications of all kinds. Online collaboration, targeting student populations is also important, as schools and universities increasing value team-based learning. More and more people are obtaining credentials and degrees on line, and apps to prepare or certify people for important tests are showing healthy margins.
The age of CD-rom learning games selling for $49.99 is long gone. Reader Rabbit is $2.99 these days. And hundreds of simple learning games are available for free or at least on a freemium model. But 2013 is a time of transformation in educational instruction, and companies that stay connected with these trends will find tremendous opportunity.
