Language has been a major driver of human development. Communication has enabled critical activities such as commerce, trade, and inter-regional relations. Even further, the hyper-connectedness created by recent globalization has greatly amplified the need for a common global language for business, sciences, politics, culture, etc. [1]<\/p>\n
Given this trends, learning foreign languages has become critical for individuals. Studies show that a second language opens career opportunities and increases intelligence by improving memory, attention span, and reducing age-related cognitive decline. [2][3][4]<\/p>\n
As expected, such a large need led many entrepreneurs to create services that teach foreign languages, like personalized home tutoring or collective classrooms in learning centers. In 2015, the global language learning industry size was $54.1 billion, heavily dominated by offline in-person models, which accounted for 89% of the market [5]<\/p>\n
The traditional solution: offline learning<\/strong><\/p>\n The traditional language teaching business model is very straightforward. Learning centers or tutors offer a combination of in-person classes plus self-study materials, which are typically printed. Students buy access to these services and materials in the hope of learning a second language.<\/p>\n Thus, the traditional operating model requires matching physical classrooms, local teachers, and local students. Although this model can be very effective, it does have pain points for all involved parties:<\/p>\n For example, Wall Street English is a major player in the language services industry, with 425 centers in 28 countries and 190,000 students [6]. The fixed and variable costs incurred to support this system are tremendous: fire insurance, cleaning services, administration overhead, etc. And all that just serve the few students located nearby an existing center! Also, finding local teachers can be tough for Wall Street English, as several governments have implemented mandatory foreign language classes at schools, leading to a shortage of available local teachers [7].<\/p>\n The new solution: OpenEnglish<\/strong><\/p>\n OpenEnglish was the first online English school in Latin America. As a digital service, it solves many of the industry\u2019s paint points by reducing need for assets, generating flexible schedules, and securing an ample supply of native language teachers for all students.<\/p>\n With OpenEnglish\u2019s online platform, physical assets are a story from the past. No more classrooms are needed and, for the first time, students from all over the world can access world-class digital content. Since 2008, OpenEnglish has had over 500,000 students, with 70,000 currently active accounts [8]. OpenEnglish\u2019s success has enabled them to raise over US$120 MM in 5 investing rounds [9].<\/p>\n This new business model based on video conferencing technology promise students English lessons whenever and wherever they want, with native English speakers. To do so, the operating model matches students with native English speakers located anywhere in the world. Individualized classes are available 24\/7, and can be supplemented with virtual trainings that students can take at their most convenient times. [10].<\/p>\n OpenEnglish spread through Latin America like wildfire, thanks to a series of sarcastic online and TV adds, in its founder himself highlights the downsides of traditional learning centers, while showing the benefits of having native English speakers as teachers (most popular spots in\u00a0https:\/\/www.youtube.com\/watch?v=7iXGuOakYnk<\/a>).<\/p>\n After models like OpenEnglish\u2019s, students have migrated away from classrooms due to increased convenience and reduced price. Thus, total industry revenues have shrunk in the last years, and are expected to continue declining (from $54.1 Bn in 2015 to 51.9 Bn in 2020). On the flipside, digital language learning revenues are expected to grow by 8% per year. [11]<\/p>\n But not everything is perfect. As mentioned in the New York Times, students from online courses can have higher drop out rates as engagement is lower and it is harder for the online course to adapt to struggling students [12]. Nevertheless, as OpenEnglish still offers real time interaction with instructors, one could argue that these effects can be mitigated by one-to-one engagement. Additionally, as Eric Fredericksen from the World Economic Forum mentions, online education systems have many benefits beyond access and flexibility, such as providing a voice to every student and increasing the time frame of conversations. [13]<\/p>\n The future for language learning<\/strong><\/p>\n Looking forward, OpenEnglish faces challenges and opportunities to use new technologies. For example, OpenEnglish could use virtual reality to create a more immersive experience during online classes and engage students in learning about new cultures. What stops us from virtually walking around Manhattan with our English tutor, while comfortably sitting in our couch in Latin America? This can even be done partnering with schools helping them to achieve with Government regulations.<\/p>\n (799 words)<\/p>\n Sources<\/u><\/strong><\/p>\n [1] American Council on the Teaching of Foreign Languages (2011).\u00a0Language Learning in the 21st Century: 21st Century Skills Map<\/em><\/p>\n [2] Does being bilingual really improves your brain?, Joe Myers, World Economic Forum, \u00a0https:\/\/www.weforum.org\/agenda\/2016\/04\/does-being-bilingual-really-improve-your-brain\/<\/a><\/p>\n [3] http:\/\/www.telegraph.co.uk\/education\/educationopinion\/10126883\/Why-learn-a-foreign-language-Benefits-of-bilingualism.html<\/a><\/p>\n [4] The cognitive benefits of being bilingual https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC3583091\/<\/a><\/p>\n [5] 2015-2020 Worldwide Digital English Market Executive Overview http:\/\/www.ambientinsight.com\/Resources\/Documents\/AmbientInsight_2015-2020_Worldwide_Digital_English_Market_Executive_Overview.pdf<\/a><\/p>\n [6] Company Website https:\/\/www.wallstreetenglish.com\/<\/a><\/p>\n [7] Opportunities abound in digital English language learning market http:\/\/monitor.icef.com\/2012\/10\/opportunities-abound-in-digital-english-language-learning-market\/<\/a><\/p>\n [8] Company website http:\/\/www.openenglish.com\/en\/<\/a><\/p>\n [9] https:\/\/www.crunchbase.com\/organization\/open-english#\/entity<\/a><\/p>\n [10] Company website http:\/\/www.openenglish.com\/en\/<\/a><\/p>\n [11] 2015-2020 Worldwide Digital English Market Executive Overview http:\/\/www.ambientinsight.com\/Resources\/Documents\/AmbientInsight_2015-2020_Worldwide_Digital_English_Market_Executive_Overview.pdf<\/a><\/p>\n\n