This is not a one-time expense, it is ongoing, because it is a necessary component of providing online as well as traditional education. Without it, though, the faculty could not produce or deliver the materials used in the online courses. In addition to this, it costs tens of thousands of dollars in start-up costs for the software and additional hardware needed. There are also recurring costs. Depending on the software providers that developed the shell, or environment in which faculty and students interact, there may be an annual fee, as well as a per student fee.
Classes are smaller which means more faculty are needed to teach the same number of students.
It is expensive to offer online education, but to remain competitive, Philadelphia University decided to enter this new delivery option. There are benefits to the school. We are able to reach beyond the traditional market to people who are time or place bound and therefore, not be able to attend classes on campus. Online courses also reduces the strain on limited class room space. The university can offer classes to traditional students later in the day when non-traditional students usually attend classes.