Where will the money for MOOCs come from?

The thing that caught my eye about this report in the Chronicle of Bill Gates’ keynote at the Microsoft Research Faculty Summit was:

“In the Q&A, Mr. Gates predicted that MOOCs would not be “place-based” classes but would be led by a small subset of instructors who taught to a broad audience. There’s a set of people, he said, who are really good at it and who have big budgets and great support.”

I’ve been wondering where the money will come from to create MOOCs (who hasn’t). Right now most institutions are simply absorbing the cost for their own early ventures with MOOCs because this is a game that everyone wants to get into without necessarily knowing where it will lead, or even the rules of the game. A few of the lucky ones may have external funding to create their MOOCs. However if you’re a university with any ambition for online learning, can you afford not to be dabbling with MOOCs right now? But longer term, when the initial rush to go live is over and the revenue models are known for the big players, how many can afford to remain in this space? I think Gates is probably right. MOOCs, or whatever they turn into, may remain the product of a small number of players with big budgets and great institutional support. Those of us without the cash will have to come up with different sustainable models for production and support for our online learning, or else mooch rather than MOOC.