Rosetta Stone 2011 Annual Report Download - page 7

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learning providers generally offer only classroom instruction, which is not convenient for all prospective language learners. In addition, there are numerous
self-study courses in the market available at a variety of price points, most of which are offered as audio and books and do not provide an interactive,
immersion learning experience. There are also many community websites that provide free opportunities to practice.
We believe that language learners seek a trusted and recognized name-brand solution that is more convenient and affordable than classroom alternatives,
and more effective, interactive and engaging than other self-study options. We believe the combination of these elements is not offered by traditional
providers of language instruction and that we have a market solution that provides this combination.
Rosetta Stone Solutions
Our mission is to change the way people learn languages. We believe our solutions provide an effective way to learn languages in a convenient and
engaging manner. Our approach, called Dynamic Immersion, eliminates translation and grammar explanation and is designed to leverage the innate, natural
language-learning ability that children use to learn their native language. We consider traditional translation and grammar methods as obstacles that delay and
impede the successful acquisition of language proficiency, and our solutions avoid those elements. Our technology based self-study courses allow our
customers to learn using the immersion method on their own schedule and for a price that is significantly lower than most classroom-based or one-on-one
alternatives.
Although other audio and software publishers claim to teach with immersion methods, we believe that we are the only self-study solution that teaches
strictly without any translation or explicit grammar explanations. Our proprietary solutions have been developed over the past 19 years by professionals with
extensive expertise in linguistic, education and instructional technology. We estimate that our content library consists of more than 25,000 individual
photographic images and more than 400,000 professionally recorded sound files. We design the sequencing of our content to optimize learning. The result is a
rigorous and complete language-learning curriculum that is also designed to be flexible, fun and convenient.
Our language-learning solutions are built upon a flexible software platform that supports multiple languages and is deployable on personal computers, on
local networks, online, tablets and smart phones. The platform incorporates a number of proprietary technologies that are central to enabling language
learning, including:
speech recognition that is focused on the unique challenges of language learners;
Adaptive Recall algorithms that repeat content at scheduled intervals to promote long-term retention;
reporting features and curriculum options designed to enhance the effectiveness and administration of classroom, enterprise and home school
learning; and
an intuitive user interface that assists the learner's transition from listening comprehension to speaking.
Rosetta Stone offers a broad product suite, with courses currently available in over 30 languages. Our courses are available in up to five levels of
proficiency per language, with each level providing approximately 40 hours of instruction and containing multiple units, lessons and activities.
In July 2009, we introduced Rosetta Stone TOTALe, an online language-learning solution that integrates our online courses with online services,
including coach-led practice sessions, language games, interaction with native speakers and live support from customer service agents. Rosetta Stone Version
4 TOTALe, which was released in September 2010, combines packaged course software and
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