In May, two of the textbook market's biggest publishers, Cengage and McGraw-Hill Education, announced plans to merge. The merger will lead to the formation of a new company, McGraw Hill, with a market cap of $8.5 billion, rivaling publishing giant Pearson for dominance of the textbook market. Currently, a mere five publishers control more than 80 percent of that market, and the creation of McGraw Hill will further reduce competition.
With textbook prices rising year after year, a merger of this magnitude could spell disaster for students. According to the Bureau of Labor Statistics, textbook prices increased 88 percent between 2006 and 2016. Given the growing monopolization of the textbook market, alternative modes of access such as open educational resources are becoming an urgent priority for schools and students across the country.
Inclusive Access: Part of the Problem
As textbook publishers have seen sales of their print materials decline, they have turned to a new subscription-based model called "inclusive access," in which students pay a flat fee to access educational materials. Inclusive access has been likened to the streaming model increasingly popular in other media, including movies (Netflix) and music (Apple Music). The consumer is no longer purchasing a product but rather digital access to a product for a set period of time.
Publishers tout two major benefits of the inclusive-access model. The first is its ability to provide students with access to educational materials on the first day of class. In the traditional model, students often are forced — due to economic pressures — to wait until after they've received their financial aid packages to order physical textbooks. Inclusive access sidesteps this problem by incorporating the charge as a course fee via the school's billing system.
The second benefit, according to publishers, is that it delivers a "win" for affordability. Students pay a single per-semester fee ranging between $100 and $150 (depending on the publisher). In theory, the fee covers all educational materials used by the student. While the cost may seem reasonable, at least initially, that reasonableness rests on the assumption that instructors will only use materials available through the inclusive access system. If, however, an instructor decides to exercise her academic freedom and chooses a text outside a publisher's inclusive access catalog, an additional financial burden is placed on her students. One can easily imagine a scenario where two of a student's four classes are "inclusive access" and the other two are not, requiring the student to pay for additional texts on top of the per-semester inclusive access fee.
Cengage recently introduced Cengage Unlimited, a platform dedicated to inclusive access that charges $119.99 a semester for access to Cengage's digitized back-catalog. In 2018, McGraw-Hill Education significantly expanded the implementation of its own inclusive-access model. If past trends are any indicator, the price tag associated with both catalogs will increase dramatically post-merger.
The inclusive-access model raises not only pricing concerns but also concerns with respect to student data and privacy. As publishers gravitate toward the model, they are beginning to collect large amounts of data and analytics about students. Indeed, groups like the Scholarly Publishing and Academic Resources Coalition (SPARC) have raised concerns that this data collection — which can include a student's physical location, study habits, and data related to individual learning outcomes — poses privacy risks.
Open Educational Resources: A Viable Alternative?
There is a better alternative. Open educational resources (OER) are freely licensed materials that reside in the public domain and can include textbooks, full courses, tests, software, and more. As the materials are free to use and can be accessed at any time, there is no concern about students not having access on the first day of class. And because the materials can be accessed free of charge, OER delivers on the promise of affordability.
Even better, OER seems to improve student outcomes, with studies attributing a more than 12 percent increase in grades for Pell-eligible students who use open educational resources. When coupled with the fact that 17 percent of underrepresented minority students indicate that the cost of educational materials has forced them to withdraw from a course, OER is the right choice at the right time for today's college students.
With the recently announced merger between two of the largest textbook publishers in the country, concern is growing that prices on all materials provided by publishers, including inclusive access materials, will rise. But if policy makers, educational institutions, and faculty take steps to invest time and money into the creation of high-quality OER, the grip that publishers have on educational materials will weaken. In turn, a higher OER adoption rate will render mergers and the worry about potential price hikes increasingly irrelevant.
Philanthropy can play a role in supporting the expansion of OER and lowering the costs of textbooks. By investing in the field, foundations and other donors can help provide students with access to educational materials and spur their academic success. Foundations such as the William and Flora Hewlett Foundation, the Lumina Foundation, and the Michelson 20MM Foundation are just a few examples of philanthropies that have funded the growth of OER in recent decades. The field is ripe with opportunity for additional leadership.
Ryan Erickson-Kulas is program officer of open educational resources at the Michelson 20MM Foundation.