Real world music lessons scale better, with many beginner classes at Guitar Center (or private centers/homes) scaling to 5ish students per teacher.
It's not as high quality as 1 on 1 instruction, but the benefits of scale cannot be understated. Offer lessons at 1/3 price but make double the revenue.
In that case it's the regional "Guitar Center" or "Yamaha Music School" or whatever that provides (i) a marketplace that also lends credibility to the instruction and (ii) scaling via group lessons and as a result take a cut from the pie.
