Electronic Media for the School Market: Review, Trends & Forecast 2006-2007

• Instructional software
• Online services and the Internet
• Multiple media packages
• Funding
• Emerging technologies

• The continuing impact of the No Child Left Behind federal education reform act of 2002, including increased accountability for both schools and companies that provide educational solutions
• The increasing dominance of assessment and remediation as key market drivers
• Continuing growth of distance learning solutions
• Emergence of one-to-one learning environments via laptops, handhelds and cell phones
• Switch from sales of individual software components to complete solution sets
• Effects of federal education cuts and improved state budgets
• And more

Table of Contents

Methodology

Executive Summary

Chapter 1: Industry Size and Structure

Introduction

Forces Impacting K-12 Education and Its Marketplace

Solution Selling Is One Response

K-12 Print Materials Lead Industry Increase

Courseware Challenges Modular Material

Mergers & Acquisitions Take Off, Then Slow Down

Table 1.1: Sales of Print and Electronic Media to the U.S. School Market, 2004-2006P

Table 1.2: Electronic vs. Print Media in the U.S. K-12 Market, 2005

Table 1.3: Electronic Media Used for Instruction in U.S. Schools, 2004-2005

Table 1.4: Share of Electronic Media Used for Instruction in U.S. Schools, 2005

Table 1.5: Simba Information’s Merger and Acquisition Index, January-December 2005

Chapter 2: Enrollment and Demographics

Introduction

The West Continues to Grow; Northeast Declines

Western States Show Long-Term Growth

Recent Growth Areas

Schools Become More Diverse

English-Language Programs Grow as Population Diversifies

Homeschool Enrollment Grows 28.9% Between 1999 and 2003

3.9 Million Require Special Services

Table 2.1: Total Public/Private Projected K-12 Enrollment, 2003-2014

Table 2.2: U.S. K-12 Public School Enrollment by Region, 2003-2013

Table 2.3: Top 10 Fastest-Growing States by U.S. Public School Enrollment, 2001-2013

Table 2.4: Public School Enrollment by State, 2004 vs. 2005

Table 2.5: Enrollment by County, 25 Districts with Largest Increases, 2005-2006

Table 2.6: Percentage of K-12 Students by Race/Ethnicity by State, Fall 1991 vs. Fall 2001

Table 2.7: English-Language Program Growth, 1990 vs. 2000

Chapter 3: Funding

Introduction

Overview

What the Federal Government Provides

Bush Proposes New Programs for Fiscal 2007

Title I: Major Source of NCLB Funding Proposed Flat in 2007

Title I District Funding Picture More Mixed

Reading First Allocations Virtually Flat

State Tax Revenue Up

Other Federal Funding

Table 3.1: Key Federal Education Appropriations, 2005-2007P

Table 3.2: U.S. Department of Education Title I State Grant Allocations, 2005-2007P

Table 3.3: Title I District Funding, 25 Districts with Largest Allocations, 2005

Table 3.4: Growth in Reading First Grants by State,

2005-2007P

Table 3.5: Average Expenditure per Student in K-12 Public Schools, 2003-2004 vs. 2004-2005

Chapter 4: Trends in Electronic Instruction

Introduction

Blogs Bloom in K-12

Wikis Used More in Higher Education

Students Embrace Podcasting

Professional Development Continues Evolution

Distance Learning Keeps Building

Tutoring Market Fails to Reach Potential

Chapter 5: Instructional Software

Introduction

Reading and ELL Are Ongoing Opportunities

Future Will Be Global

Titles Slow, but Still Represent Largest Share of Software Market

Comprehensive Courseware Continues Double-Digit Growth

Riverdeep Leads Electronic Publishers in 2005

Difficult Year for Some Providers

Table 5.1: Spending on Software Used for Instruction in U.S. Schools, 2004-2005

Table 5.2: Leading K-12 Instructional Software Publishers, 2004-2005

Table 5.3: Software Performance Ranking, 2004 vs. 2005

Chapter 6: Video

Introduction

Formats: VHS, DVD and Streaming Video

What Educators Are Saying

Education Going Hollywood

The Costs to Schools

Case Study: Iowa

Forecast

Competitors in the Video Market

CLEARVUE & SVE

Discovery Education

Goldhil Entertainment

Library Video Co.

Films Media Group

Other Market Contributors

Table 6.1: Electronic Media Used for Instruction in U.S. Schools, 2004 vs. 2005

Table 6.2: Number of VHS/DVD Titles for the U.S. School Market Introduced by Leading Vendors, 2005

Table 6.3: Comparison of Streaming Video Packages, Leading Vendors, 2005

Table 6.4: Price of Streaming Video by Vendor, 2005

Chapter 7: Hardware and Emerging Technologies

Introduction

Overview of Computer Access

Daily Usage Lags Behind Access

Districts Plan Technology Initiatives, but Are Cautious in Spending

Dell Is the Most Popular School Computer

Wireless Options Continue Expansion

One-to-One Computing

Handhelds Are One Alternative to Laptops

One-to-One May Evolve Toward Cell Phones

Interactive Whiteboards Used in 30% of Schools

Interest in Wireless Devices for Assessment

Table 7.1: Computer Intensity by State, 2003-2005

Table 7.2: Wireless Network Penetration by School Type, 2002-2005

Table 7.3: Laptop Penetration by School Type, 2004-2005

Table 7.4: The Digital Backpack

Table 7.5: Digital Whiteboard Penetration by School Type, 2004-2005

Chapter 8: Forecast and Conclusions

Introduction

What Will Drive Sales

Comprehensive Courseware Will Outpace Market

Table 8.1: Forecast Electronic Media Used for Instruction in U.S. Schools, 2006-2009

Chapter 9: Company Profiles, Software Vendors

American Education Corp.

AutoSkill International Inc.

Carnegie Learning Inc.

Curriculum Advantage

Harcourt (Reed Elsevier)

Houghton Mifflin Co.

Inspiration Software

LeapFrog Enterprises Inc.

Learning.com

McGraw-Hill Education

Pearson Education

Plato Learning

ProQuest Information and Learning

Renaissance Learning

Riverdeep

Scholastic Corp.

Scientific Learning Corp.

Siboney Corp.

Sunburst Technology

WRC Media/CompassLearning