Quite a few universities see MOOCs as a way to enhance their own campus student experience. From their point of view, university gets tuition from local students, obtain resources from local government to develop local talents. ‘Why spend my money raising others’ kids? ‘
Think about the film business. Movies used to be made exclusively for cinema goers. Then DVD came out. Those who missed the cinema season could get a DVD to watch at home. Then Netflix further disrupted the system. House of Cards was premiered on the streaming service Netflix.
Campus students, like cinema goes, paid a premium price to enjoy an exclusive experience, entertainment or education. The beauty of the Netflix model is that, for those who missed Batman as they were watching Ironman, can still watch Batman later; for those who went to UCLA can still watch a lecturer taught by Tsinghua University without being in the campus. It does not have to be exclusive.
Like the movie industry which steps out of cinema and expands to a wider range of distribution channels, education industry has the same option.