Islamic e-learning platforms thriving in a $1.8 billion MOOC market

Online education and learning platforms such as Bayyinah TV, Yurizk Academy, ProductiveMuslim Academy, and Creative Ummah have emerged and proven successful. What scope is there for new players to launch Islamic e-learning platforms?

HIGH GROWTH ONLINE MARKET

The global e-learning market was estimated at $165 billion in 2014 and is projected to grow by 5 percent CAGR to reach $243 billion by 2022, estimates market research consulting firm Stratistics MRC. The 2015 market is estimated at $173 billion.

Although the e-learning market is dominated by established players such as McGraw-Hill, Blackboard, and Adobe Systems Inc., massive open online courses (MOOC) providers represent a disruptive sub-segment of e-learning that enables unlimited learning and open enrollment.  

MOOC is a rapidly growing sub-segment of the overall e-learning market. The MOOC market was estimated at $1.8 billion in 2015 and is projected to grow by 36 percent cumulative annual growth rate (CAGR) to reach $8.5 billion by 2020.

The MOOC market has been driven by rapidly increasing demand for courses due to the high cost of education and the inability of colleges and universities to meet the global demand for higher education. Several notable, high-impact players have emerged over the last ten years.

Udacity is a fee-based online learning platform that provides specialized software training and vocational courses through nanodegree programs that allow participants to complete individual courses. The platform raised $105 million in Series D financing in late 2015, valuing the company at $1 billion.

Udemy describes itself as an online learning marketplace. The platform claims to have more than 40,000 courses that are available on demand. Some courses are free while others are fee-based, with prices ranging from $5 to $250, according to Forbes. Udemy raised $65 million in a Series D funding round in 2015.

Khan Academy provides free online education, with a wide range of courses. Launched in 2006 by educator Salman Khan, the site now contains over 3,400 lectures and is funded primarily by grants. CrunchBase has listed Khan Academy’s most recent fundraising effort, in 2013, at $2.2 million.

SUBSTANTIAL MUSLIM OPPORTUNITY

Muslims were estimated to be worth $107 billion to the global digital economy in 2014 according to the State of the Global Islamic Economy Report 2015/16 and the global Muslim community is demanding tailored products and services that meet their values, and lifestyle needs.

The global market for online education is growing rapidly, and there is significant demand for educational services that are both tailored to the spiritual and values-based productivity needs of Muslims and that go beyond traditional classroom-based instruction to provide open access and flexible learning for users.

The State of the Global Islamic Economy Report 2015/16 identified over 50 educational services providers out of 396 digital Islamic services that address a robust global demand for Islamic values-based education and which had also reached a critical mass of users.

A leading Islamic e-learning platform is Bayyinah TV, founded by Nouman Ali Khan. Bayyiniah TV seeks to make Islamic knowledge more accessible to the Muslim youth. It is in the top 10 leading digital Islamic services and offers seven online courses, including Quran recitation, Arabic, and Islamic history, with over 400 video lectures online. The company offers a subscription model, with pricing at $11 per month, or $122 per year, but Nouman Ali Khan has stressed the emphasis on building scale: “[W]e would much rather have a massive base of unpaid subscribers benefiting from our services than an exclusive, paid-only subscriber base.”

ProductiveMuslim is a popular blog that extracts lessons from the Quran and the history of Islamic civilization, collating them with modern tips and tools to equip Muslims for a productive lifestyle. Access to the platform’s latest courses and classes as well as online library is priced at $9 per month.

In addition to online programs affiliated with academic institutions, several other key players have also emerged in the provision of Islamic Economy education.

Yurizk Academy offers both academic classes, taught by lecturers, and skills-based classes, such as marketing for halal tourism, taught by entrepreneurs.

Another dedicated online provider that offers an accredited online course in Islamic finance is Islamic Online University.

Creative Ummah aims at supporting the needs of Muslims working in the creative and design industries. It seeks to enhance and connect talent in the ummah through its e-learning platform and online community and encourage experienced creative designers and artists to share their expertise through affordable online courses.

CHALLENGES AND OPPORTUNITIES

Scaling an Islamic e-learning company can be a challenge (a common one among startups), especially if demand for the product increases faster than expected. This is certainly true for Nouman Ali Khan of Bayyinah TV, who cited “developing technologies to meet user demand and bandwidth” and “expanding customer support and engagement capabilities” as major challenges to growing rapidly. Scaling technology and customer support require a company to have a strong team from the start.

Mohammed Faris, the founder of ProductiveMuslim, recalls the challenge of establishing the brand, “Productivity is not easy to sell, but we persevered and made our content free to build awareness,” He said.  Perseverance, coupled with using the right advertising channels, can help e-learning companies penetrate their market much faster.

Muslim Ad Network represents a key avenue for digital services to reach Muslims. Emphasizing the service’s value in helping companies target Muslim consumers, founder Saad Ahmad commented, “There is a void we’re filling in an underserved market that would otherwise be unscalable to target directly.”

However, there are several adjacent offerings for e-learning platforms that can help grow revenues substantially, such as media and social networking. For instance, Creative Ummah started as an e-learning platform but later realized the value in creating an online community of learners and designers.

Subhi Bora, Co-Editor at Creative Ummah, said, “We have recently iterated and moved away from our initial focus on providing courses for an e-learning experience. We realized that the most value for the site, even at the very beginning, was an active directory of inspiring people. We extended this to include stories, cool events, and other things that are happening around the Ummah.” 

© SalaamGateway.com 2016