Delivered at Casual Connect USA 2018. The subscription model has become the most viable path to profitability for the kids app marketplace and is a concrete revenue strategy for global brands looking to extend their reach. In this talk, Nancy MacIntyre will discuss how subscription services will continue to fuel the kids app economy by giving consumers the accessibility, variety and value they desire; while giving app developers and global partners access to millions of consumers and a revenue pipeline.

1. The Subscription App
Economy & Kids
Presented by Nancy MacIntyre, CEO Fingerprint
Casual Connect 2018

2. • Founded in 2011
• Based in San Francisco
• 32 full-time staff
Funded by Corus Media,
DWA/NBC, Reed Elsevier,
GSV and Trinity Capital
Veteran management team with over
100 years of combined experience
making and marketing great products
Fingerprint is a mobile technology company focused on bringing the
best subscription based content services to children around the world
Our Foundation
Technology
Turnkey subscription
aggregation platform
Distribution
Flexible and adaptable for
OEM and carrier partners
Content
Vast library of learning
games, books and videos
Curation
Curriculum-aligned
content curation system
Mobile Platform
for Content
Library of
Games, Books
and Videos
Management Tools
Support Platform
as a Service
Our Solution
Our Platform Partners
Our Key Content Partners
A best-in-class product that drives
engagement for kids and parents
Streaming-based, cross-device and
cross-OS learning platform
A progressive learning path for a
personalized learning experience
A robust library of premium apps
hand-picked by educational experts
Expertise in the mobile kids business
Competitive Advantage

3. Mobile penetration is
driving digital content spending to new heights
Over 300M families around the world
have access to mobile devices
Mobile
Gaming
$37B
Educational
Technology
$44B
OTT
Video
$25B
eBooks
$6B
Source: US Census 2010/2013, US Department of Agriculture, Strategy & Analytics, Doecebo, NewZoo3

4. Company Valuation Paid Subs Revenue Price / Month
$42B 83M $7B $9.99
$10B 12M $2B
(57% subscription)
Basic $7.99
Ad-free $11.99
$8B 30M $2B $9.99
$3B 4M $1B
(16% subscription)
Basic $3.99
Ad-free $4.99
More and more, that content is being accessed through
subscription-based curated content platforms and OTT products
Source: Company Reports
4

5. Since the inception of the App Store, the Kids Business has
been in search of a financial model
Premium
Freemium
Bundles
Subscription
5
2007
2010
2014
2016

6. Today, there’s over 1000 Kids Subscription Apps
around the world across a range of formats
Subscription
Apps
Branded
Content
Books
Video
Games
Learning
6

7. So why the shift to Subscription?
Commerce
• Apple expanded the types of apps eligible for Recurring Subscriptions
• App Store / Google Play improved profit potential for long term subscriptions
Consumers
• Widespread adoption of wide range of subscription products
• Business model eliminated fear of IAP or Ads with Kids
Product
• Predictable revenue allows for on-going investment in the product
• Ability to market directly to Mom / Parent
Developers
• Improved ARPU and LTV
• Growing user with recurring payments

8. 2014 2015 2016 2017

9. In fact in 2017, 18 of the top 25 Grossing Kids
Apps used a Subscription Model
• Leading Subscription Apps tend
to focus on 4 main themes:
• Learning (progressive learning
systems)
• Video (branded video experiences)
• Games
• Books (aggregated book
platforms)
Learning
42%
Games
16%
Books
10%
Video
32%

10. Compared to Games, this is pretty remarkable
Model
FREEMIUM
FREEMIUM
FREEMIUM
FREEMIUM
FREEMIUM
FREEMIUM
FREEMIUM
FREEMIUM
FREEMIUM
FREEMIUM
Model
SUB
SUB
SUB
PREMIUM
SUB
SUB
SUB
PREMIUM
SUB
SUB

11. So why is it?
Parents
Engagement
Tools
Marketing
Channels
IAP
Moment of
Truth
FREE

12. One example of Subscription vs Freemium
Product A-Free was initially launched
as a Freemium Game for Kids 5 to 8
• Sample Pack of 10 Activities
• Upsell to content packs for $2.99 with 50
Activities
• New pack every 4 weeks
• After 6 months, conversion to paid was
less than 2%
Product A-Sub was relaunched as a
Subscription game on month 6
• 7 Day Free Trial with 30 Activities
• Upsell to full access to all content for
$3.99 / month
• Commitment to launch 10 new activities
a week
Subscription,
$223,407
Freemium, $11,795
REVENUE GENERATED BY SAME GAME APP
AS FREEMIUM VS SUB MODEL IN MONTHS 3 TO 6

13. Looking at the KPIs
App Store
Conversion
D1 Retention
Free Users
% of installers
starting
content
% going into
trial
% of trialers
who pay
% of DAU to
Total Subs
Payer
Retention
Annual /
Monthly Sub
Ratio

14. KPI’s significantly improved with Sub App
KPI Actual
CVR (App Store
Conv)
35%
% of Installers
Starting Content
90%
D1 Retention Free
Users
40%
% going into Trial 38%
% of Trialers who
Pay
85%
Payer Retention
(Mo to Mo)
85%
% of Players who
pay
11.3%
KPI Actual
CVR (App Store
Conv)
52%
% of Installers
Starting Content
85%
D1 Retention Free
Users
30%
% going into Trial NA
% of Trialers who
Pay
2.5%
Payer Retention
(Mo to Mo)
60%
DL to Pay ratio 1.3%
Freemium Subscription

15. Considering a Subscription App
• Targeted at 3 to 8 year olds (generally) where Mom is making most
decisions
• The App has great introductory content for the Trial with strong
mechanics to keep a child playing
• The App has a lot of content (needs 2 year roadmap)
• The content and value offered warrant the recurring price
• You have invested in tools to create engagement with both the child
and parent
• You can keep a user for at least 12 months
• You are prepared to run Live Operations of the product !

16. Questions?

17. Appendix

18. Top performing Subscription based Kids Apps are leading with
content scale and dynamic updates
App What is it? How much
Content?
ABC Mouse Progressive Learning 8500+ Activities
Epic Book Library 25000 Books
Noggin Video Episodes 100+ Videos
Disney Jr. Video and Interactive 10 Series+
Curious World Games, Video, Books 1000+ Activities
PlayKids Video, Games, Books 4000+ Videos and
Game/Book library
Samsung Kids Video, Games, Books 10,000 Hours of Play
Amazon FreeTime Video, Games, Books Over 15,000 Content
Apps/Videos/Books