Cupcake digital inc position paper 3

www.cupcakedigital.com

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February 25, 2013 How Cupcake Digital Takes Social Responsibility Very Seriously From the first day we opened our doors at Cupcake Digital, one of our guiding principles was to create apps that balance entertainment and fun with parents’ priorities; education, safety, and privacy. We believe that Social Responsibility is good business, and we believe good business leads to success. In this paper, we discuss the different ways we show parents we are a trusted source of entertainment-based apps infused with learning moments. Objective: To demonstrate how Cupcake Digital’s commitment to social responsibility is reflected in the development and continuous improvement of our children’s application products and in every business decision we make. Background: The emerging category of children’s mobile applications is growing and changing exponentially. As rapidly as new applications, devices and products go to market, new issues and concerns are brought to light by parents, caregivers and educators. At Cupcake Digital, we make every effort to be responsive as well as anticipatory – to look both around and ahead in the digital environment to make responsible decisions that will benefit children. Expanding Awareness of the Common Core State Standards In previous position papers we discussed Cupcake Digital’s recognition of the Common Core State Standards (“CCSS”) – a set of requirements for children K-12 to ensure that they are college and career-ready by the end of high school -- as an important advance in education. We took the decision to help prepare children to meet these standards by infusing our apps with activities directly aligned with the CCSS.

While 47 states have begun the process of adopting the CCSS, market data reveals a current lack of awareness of the standards among parents.


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An online survey conducted by WeAreTeachers.com revealed that only one in five teachers says his or her students’ parents are aware of CCSS. At Cupcake Digital we saw this as an opportunity not only to help prepare children to meet the standards, but also to create increased awareness among parents of what will be required when preschoolers start kindergarten, and kindergarteners advance to first grade. In response, we have infused our apps with educational activities that address specific Common Core skills, and we include a Common Core Corner to help parents understand how their children are learning through these activities and the reading of the story in the app.

The Common Core Corner provides tips on how to prepare a child for his or her first school year(s) and makes getting ready for the new kindergarten standards simple and FUN. Cupcake Digital is also offering downloadable activities, lesson plans and guides for parents and teachers online.


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A Core Value - Embracing the Children’s Online Privacy Protection Act (COPPA) The Children's Online Privacy Protection Act applies to the online collection of personal information from children under 13. The rules spell out what website operators must do if they want to collect personally identifiable information from a child. Among other things, the law explains what to include in a privacy policy; when and how to seek verifiable consent from a parent; and what responsibilities an operator has to parents to ensure they remain in control of their children’s personally identifiable data. Cupcake Digital takes these requirements seriously, and we review our practices regularly to ensure that we remain compliant with the law as well as industry best practices. Our partnership with Playwell, LLC provides us expert guidance on effectively navigating regulatory, self-regulatory and general industry concerns related to online privacy. “Keeping children safe in the digital market is part of my company’s mission,” says Linnette J. Attai Founder of PlayWell, LLC. “I’m delighted to be working with Cupcake Digital at every phase of production to help ensure a healthy and positive experience for children.”


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The Child Gate Helping Children Stay Safely Within Our Apps

Cupcake Digital is introducing a new feature in all its apps that is intended to build further trust among parents, while preventing accidental or unintentional interactions by children with parent-centric features within our apps: the “child gate.” The child gate appears in the form of a question pop-up on the screen asking: “To enter this area, you must provide your date of birth.” This was specifically designed based on the premise that a preschooler, Cupcake’s primary audience, would either be unable to read the question or articulate and input an answer. The “child gate” serves several purposes. Unless the question is answered in a way that indicates that the user is 13 or older, it:

a) Blocks the ability for a child to be taken outside the app and acts as a safeguard to only allow parents to purchase additional Cupcake apps, if they choose to; and

b) Allows only parents, caregivers and educators to access the help section to interact with Cupcake Digital should they have a question, suggestion or desire to get in contact with us; while also restricting a child’s access to social media links from within our app.

Cupcake Digital is committed to listening to parents’ needs and suggestions and responding with continuous improvements to our apps and games. We encourage an open dialogue if you are a parent, caregiver or educator who would like to learn more or have a suggestion on how we can better meet your needs. Please contact us by visiting: http://www.cupcakedigital.com/contact/. Selecting media properties that deliver positive messages and promote good values Cupcake Digital’s apps are based on well-known and loved children’s entertainment media properties. Our selection of properties is driven by both entertainment value and social value. We insist that our apps and games not only entertain and educate, but also help children build good social skills and recognize the importance of positive behaviors. For example:


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Wow! Wow! Wubbzy! storylines, as presented in our apps, convey messages about self-awareness, sharing and responsibility, listening, helping others, and the value of friendship and community. In every episode of Tickety Toc, one of Cupcake Digital’s newest properties, children learn teamwork, problem solving and social responsibility as they follow the adventures of Tommy and Tallulah. Making activity-based learning an integral part of our product offering Experts are taking a new look at how games —especially when combined with the latest technology—can motivate students and teach them the skills they really need for the 21st-century workplace, according to WeAreTeachers.com. Their recent survey noted:

• 67 percent of teachers now use games traditional and digital games in the classroom;

• 81 percent feel that students are more engaged when playing games;

• 65 percent say games help children develop problem-solving skills;

• 68 percent say games help children develop social skills like sharing.

“From the beginning, we recognized the power of play as an important learning tool and developed games that are both stand alones and an integral part of our storybook apps,” says Susan Miller, President of Cupcake Digital. Cupcake Digital’s in-app activities and games help children advance their fine motor skills; learn letters, numbers, shapes, and colors; and practice kindergarten- and first grade-level math and reading – all the while having fun! “Social responsibility in dealing with children is a common sense investment in our future. Cupcake Digital, a company of parents and professionals with years of experience working in children’s media, takes doing the right thing personally,” says Paul Levitz, a member of Cupcake Digital’s Board of Directors and former President and Publisher of the DC Comics division of Time Warner.


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About Cupcake Digital Inc. Cupcake Digital, Inc. was established in June 2012 with the intent of transforming children’s entertainment properties into deluxe story experiences infused with educational moments. Its first venture into digital applications was based on the Emmy Award-winning television series “Wow! Wow! Wubbzy!” The app immediately rose to # 1 and # 3 among children's book apps on Amazon and iTunes respectively. Since then, every subsequent children’s story app created by Cupcake Digital has achieved a top 10 rating on Amazon. Headquartered in NYC, Cupcake Digital was founded by proven professionals in the fields of technology, family entertainment, publishing and brand marketing. In October of 2012, Cupcake Digital received its first round of private funding and has since gone on to partner with additional major children's entertainment properties. For more information about Cupcake Digital Inc., please contact Carmen Hernandez at [email protected] or visit www.cupcakedigital.com.

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Cupcake digital inc position paper 3