The Masterclass business model is centered around providing high-quality courses or educational content to anyone with an internet connection. It is built on the idea that education should be accessible to everyone, regardless of their background or location.
However, MasterClass’ approach goes beyond just delivering content. The company invests heavily in key resources like experienced instructors and production equipment to create polished video lessons.
They basically find top talents and turn them into instructors, with experts like Serena Williams, Gordon Ramsay, and Martin Scorsese teaching courses in areas such as acting, sports, filmmaking, and cooking. Compared to other online education platforms that offer thousands of courses from various sources, MasterClass focuses on a smaller selection of world-class instructors.
So, let’s run through MasterClass’ processes, business model, history, strengths, and weaknesses, and wrap up with the factors that have contributed to its growth so far.
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David Rogier and Aaron Rasmussen saw the potential for an online education platform to give people access to some of their favorite artists’ knowledge and expertise, so they launched Masterclass in 2015.
Rodger’s inspiration to launch MasterClass came from a piece of advice he received as a boy from his grandmother, who told him that the best way to learn a new skill was to learn from the best. This idea stayed with him throughout his life, and in 2014, Rodger founded MasterClass with his friend Aaron Rasmussen, a co-creator of the video game BlindEye.
MasterClass began with three classes: Dustin Hoffman on acting, Serena Williams on tennis, and Patterson on writing. The classes quickly gained popularity, and the founders soon expanded into other areas, including music and cooking. In its early days, MasterClass relied heavily on word-of-mouth marketing and its instructors’ reputation to attract students.
By 2017, the company had raised $56.4 million in funding, including investments from IVP, New Enterprise Association, Javelin Venture Partners, and Advancit Capital. The company used this funding to expand its offerings and improve its platform, focusing on creating a high-quality and engaging learning experience. MasterClass was also able to add twelve more classes in the same year, 2017.
In 2018, the company raised $80 million in a Series D funding round led by IVP. This funding doubled the previous year’s sales, indicating the platform’s growing popularity among learners worldwide.
MasterClass also introduced a new subscription model in 2018. Customers could pay an annual fee of $180 for unlimited access to all MasterClass lessons, which previously cost $90 each. With this new pricing model, more people were able to use and afford the platform.
Also, in 2018, MasterClass released its first-ever mobile app, marking a significant milestone in its growth. Prior to the launch of the app, the company’s growth had mainly come from desktop users.
David Schriber was appointed the company’s Chief Marketing Officer in June 2019. The company also expanded into topics such as politics, economics, and video game design.
Co-founder Aaron Rasmussen also announced his departure from the company to start Outlier in 2019, a similar online education platform that offered college credits and glammed-up university professors.
MasterClass made headlines throughout 2020, with new courses and celebrity instructors joining the platform.
The COVID-19 pandemic cannot be ignored in Masterclass history because it impacted the company mightily, but Masterclass adapted quickly by offering free classes to affected students and launching MasterClass Live. This initiative allowed students to participate in virtual events like cooking demonstrations, writing workshops, and live Q&A sessions with instructors.
MasterClass currently has over 1 million registered subscribers worldwide; these users pay $180 per year for unlimited access to all classes on the MasterClass site.
MasterClass is a private company co-founded by David Rogier and Aaron Rasmussen.
These are the Key People in the Company: David Rogier, Valen Tong, David Schriber, and Len Amato
The MasterClass mission statement is “to unlock human potential by inspiring a learning lifestyle in everyone.”
MasterClass is a platform to learn from the best. It’s a way for you to connect with top artists, creators, and thought leaders in your field of interest. The company offers access to expert-led classes on any device, which you can stream or watch offline.
The company gives subscribers access to high-quality, pre-recorded video courses that range in length from 10 to 30 minutes and have clear audio, visuals, and interactive sections.
Now, all of this is available for a subscription fee of $180 per year.
MasterClass courses, unlike traditional education, aren’t meant to cover everything. Instead, they’re meant to give unique ideas, tips, and inspiration that aren’t usually available. You can learn at your own pace, with the flexibility to take courses that interest you and skip those that don’t.
The primary way that MasterClass makes money is through subscriptions. Subscribers can purchase individual courses for $90 or $180 for an all-access pass, which gives them unlimited access to all courses in the MasterClass library. Each course features multiple video lessons, downloadable materials, and access to a community forum.
MasterClass has partnered with a number of companies and organizations to make their classes more accessible. For example, you can use the MasterClass app to watch videos on your phone or tablet through Apple TV. Apple has worked with MasterClass to make a version of the app that works best with Apple TV 4K HDR. This version lets users watch videos in high definition and the Dolby Vision color space.
MasterClass’ affiliate program lets bloggers and influencers make money by promoting MasterClass courses on their sites. Affiliates can earn a percentage of the sale when someone clicks on their unique referral link and purchases courses on the MasterClass website.
The MasterClass Business Model can be explained in the following business model canvas:
MasterClass customer segments consist of:
MasterClass value propositions consist of:
For instance, MasterClass offers writing courses from authors like James Patterson and Margaret Atwood, cooking courses from chefs like Gordon Ramsay and Wolfgang Puck, and music production courses from Grammy-winning producers, such as Timbaland and Hans Zimmer. MasterClass gives users access to these experts so that they can learn from the best in their field, get valuable tips and insights, and improve their skills and knowledge. Learners can also access the courses at any time, from anywhere, making it convenient and accessible for everyone.
The MasterClass channels consist of the following:
The MasterClass customer relationships consist of the following:
The MasterClass revenue streams consist of the following:
The MasterClass key resources consist of the following:
The MasterClass key activities consist of the following:
The MasterClass key partners consist of the following:
The MasterClass cost structure consists of the following:
Below, there is a detailed swot analysis of MasterClass:
Masterclass is a thriving online education platform that features world-renowned experts as instructors, high-quality production, and a subscription-based revenue model that has allowed it to stand out in a crowded market.
Although it battles with some challenges, the company has continued to grow and expand its offerings. As the online education industry continues to change, it will be interesting to see how MasterClass adapts and innovates to maintain its position as a leader in the market.
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