Workplace

Dips in subscribers and a fight for your attention: How ed tech looks a lot like Netflix

A lot of the challenges facing Netflix were first seen in the corporate learning landscape years ago.

Notes

Learning and development platforms want stay nimble and relevant.

Photo: Firmbee.com/Unsplash

For those keeping score, yet another ed tech company in the corporate learning space has consolidated. Early last month, Codecademy, the learning platform known for teaching millions how to code online, finalized its agreement to be acquired by Skillsoft.

Consolidation has become commonplace in the sector. This is the third ed tech acquisition since June 2021, when Skillsoft went public. The company is known in the industry as one of the earliest purveyors in the corporate education game.

This most recent acquisition represents efforts by some of the oldest and most established learning and development platforms to stay nimble and relevant in a time when attention is scarce and training material goes quickly out of date. And while some may be concerned that this foreshadows a future in which the space is controlled by a few mighty corporate learning providers, experts say the opposite is true.

For Skillsoft, the move to acquire Codecademy made sense. The company has been rapidly building out a full suite of new learning options for its corporate partners to hit employees at every level. Skillsoft acquired both Global Knowledge, a technical training platform, and Pluma, a leadership coaching platform, in 2021. Skillsoft CEO Jeff Tarr said the company is also optimizing content for mobile to catch people wherever they are online.

“We've created what we refer to as the new Skillsoft,” said Tarr, who officially assumed the role last year. He described the company's variety of ed tech offerings for learning leaders, including those from Skillsoft, Global Knowledge, Pluma and now Codecademy. “Each bring something different and special to the table,” Tarr told Protocol.

While Skillsoft has long been known as a major player in online learning aimed at enterprise companies and their employees, Global Knowledge is more of a leader in instructor-led, synchronous learning. Its trainings focus primarily on the technical skills needed to support some of the largest hardware and software vendors in the world, he said. Pluma, on the other hand, delivers executive, leadership and management coaching to corporate employees.

“We've put all of these together with the objective of creating a new and more absorbing and engaging way to learn online,” said Tarr. He’s thinking about how to capture audiences with content that appeals to a wide variety of interests while also justifying the cost.

“When it comes to everything we do, we believe we don't just compete with other learning options: We're competing for learners' time with other options in general. So we have to compete with the most compelling entertainment options that people have, because when you're going to be on a mobile device and you have a choice of how you're going to use your time, we want people to learn,” he said. “And so that means consumerizing the experience … And it means making what we do incredibly engaging.”

Josh Bersin, industry analyst and CEO of The Josh Bersin Company, likens what’s been happening in the enterprise ed tech industry over the past several years to what we are now seeing at Netflix: dips in subscribers and a fight for consumers’ attention.

“It's very similar to the problem at Netflix: You get really big and you have all these customers, and all of a sudden, you don't have the best content anymore, and a bunch of people leave,” said Bersin. That’s why so many enterprise ed tech companies have taken to buying up smaller brands with more innovative content and established customer bases.

Zach Sims, co-founder and CEO of Codecademy, said the company will continue to hold on to its distinct value proposition: offering highly interactive technical training for anyone to learn, even as it moves under the historically corporate umbrella of Skillsoft. He touts its “learning by doing” model and the quality of content as what make Codecademy so unique.

“There are bootcamp programs, there are more intensive programs that are created in partnership with universities or someone else, but we stand behind our content because we create almost all of it in-house,” Sims told Protocol.

Because of their size, companies like Codecademy are often considered to be the most innovative and nimble in the space. “The dynamics are: When you're small and creative, you come up with really good content, and really creative new ways of expressing it. The bigger you get, the more your company becomes a sales and marketing company,” said Bersin.

But this does not mean the industry is doomed to consolidate into several big enterprise ed tech companies in the future. “What actually happens is the opposite. A lot of the really big ones go out of business … because their content was old,” he said.

Bersin believes there will always be a bevy of smaller mom-and-pop ed tech shops in the corporate learning landscape.

Workplace

The tools that make you pay for not getting stuff done

Some tools let you put your money on the line for productivity. Should you bite?

Commitment contracts are popular in a niche corner of the internet, and the tools have built up loyal followings of people who find the extra motivation effective.

Photoillustration: Anna Shvets/Pexels; Protocol

Danny Reeves, CEO and co-founder of Beeminder, is used to defending his product.

“When people first hear about it, they’re kind of appalled,” Reeves said. “Making money off of people’s failure is how they view it.”

Keep Reading Show less
Lizzy Lawrence

Lizzy Lawrence ( @LizzyLaw_) is a reporter at Protocol, covering tools and productivity in the workplace. She's a recent graduate of the University of Michigan, where she studied sociology and international studies. She served as editor in chief of The Michigan Daily, her school's independent newspaper. She's based in D.C., and can be reached at llawrence@protocol.com.

Sponsored Content

Foursquare data story: leveraging location data for site selection

We take a closer look at points of interest and foot traffic patterns to demonstrate how location data can be leveraged to inform better site selecti­on strategies.

Imagine: You’re the leader of a real estate team at a restaurant brand looking to open a new location in Manhattan. You have two options you’re evaluating: one site in SoHo, and another site in the Flatiron neighborhood. Which do you choose?

Keep Reading Show less

Elon Musk has bots on his mind.

Photo: Christian Marquardt/Getty Images

Elon Musk says he needs proof that less than 5% of Twitter's users are bots — or the deal isn't going ahead.

Keep Reading Show less
Jamie Condliffe

Jamie Condliffe ( @jme_c) is the executive editor at Protocol, based in London. Prior to joining Protocol in 2019, he worked on the business desk at The New York Times, where he edited the DealBook newsletter and wrote Bits, the weekly tech newsletter. He has previously worked at MIT Technology Review, Gizmodo, and New Scientist, and has held lectureships at the University of Oxford and Imperial College London. He also holds a doctorate in engineering from the University of Oxford.

Policy

Nobody will help Big Tech prevent online terrorism but itself

There’s no will in Congress or the C-suites of social media giants for a new approach, but smaller platforms would have room to step up — if they decided to.

Timothy Kujawski of Buffalo lights candles at a makeshift memorial as people gather at the scene of a mass shooting at Tops Friendly Market at Jefferson Avenue and Riley Street on Sunday, May 15, 2022 in Buffalo, NY. The fatal shooting of 10 people at a grocery store in a historically Black neighborhood of Buffalo by a young white gunman is being investigated as a hate crime and an act of racially motivated violent extremism, according to federal officials.

Photo: Kent Nishimura / Los Angeles Times via Getty Images

The shooting in Buffalo, New York, that killed 10 people over the weekend has put the spotlight back on social media companies. Some of the attack was livestreamed, beginning on Amazon-owned Twitch, and the alleged shooter appears to have written about how his racist motivations arose from misinformation on smaller or fringe sites including 4chan.

In response, policymakers are directing their anger at tech platforms, with New York Governor Kathy Hochul calling for the companies to be “more vigilant in monitoring” and for “a legal responsibility to ensure that such hate cannot populate these sites.”

Keep Reading Show less
Ben Brody

Ben Brody (@ BenBrodyDC) is a senior reporter at Protocol focusing on how Congress, courts and agencies affect the online world we live in. He formerly covered tech policy and lobbying (including antitrust, Section 230 and privacy) at Bloomberg News, where he previously reported on the influence industry, government ethics and the 2016 presidential election. Before that, Ben covered business news at CNNMoney and AdAge, and all manner of stories in and around New York. He still loves appearing on the New York news radio he grew up with.

We're answering all your questions about the crypto crash.

Photo: Chris Liverani/Unsplash

People started talking about another crypto winter in January, when falling prices had wiped out $1 trillion in value from November’s peak. Prices rallied back in March, restoring some of the losses. Then crypto fell hard again, with bitcoin down more than 60% from its all-time high and other cryptocurrencies harder hit. The market’s message was clear: Crypto winter was no longer coming. It’s here.

If you’ve got questions about the crypto crash, the Protocol Fintech team has answers.

Keep Reading Show less
Latest Stories
Bulletins