In addition to adding new, interactive features on its language learning app, Rosetta Stone has also rolled out a variety of subscription plans to attract a broader audience. "We can push out new technology and changes to consumers and allow them to benefit as they evolve," Hass said. Last year, the company introduced "seek and speak," a feature that uses object recognition technology so users can, for instance, point the camera on their phone or tablet at a piece of fruit the app can identify the fruit in the target language and engage users in a conversation about it. With the online subscription model, companies can now see how it is being used, customize, and make adjustments accordingly. When the company sold boxes of CDs, it had no idea how or if they were being used. Today's subscription and mobile app model allows Rosetta Stone to be more interactive, Hass says. Duolingo uses gamification to keep users motivated and adapts lessons and tailors exercises to different learning styles. Babbel, for instance, uses speech recognition tools to test 'users' pronunciation.
Today's mobile apps can "hear" and correct pronunciation in real-time, "see" and identify everyday items around the student.
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They aim to shift students from books or software that updates maybe once a year to apps that are part gaming - and part behavioral psychology.
Start-ups in the language learning arena such as Duolingo, which is financed by Kleiner Perkins, Union Square Ventures and others, have huge potential to change the way we learn. edtech companies raised $1.45 billion, up from $1.2 billion in 2017, according to EdSurge, an education news organization funded by several venture capital firms. Silicon Valley seems to have set its sights on transforming the educational sector. "Providing a seamless learning experience across desktop and mobile devices became the clear path forward when we saw that most of our learners were using a mobile device for at least part of their learning," he said.Įducation, and specifically education technology, has become an enormous area of interest for start-ups and investors. Over the past three years, mobile usage among Rosetta Stone customers has exploded going from being less than 10% to 85% of usage today, Hass said.
What became clear was that customers are moving to mobile apps and subscription services. I watched a company that had been pursuing a strategy of decreasing prices and I watched that strategy stop working," he said. "When I joined the business as a director in late 2014, we were still primarily language learning through boxes of CDs.
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John Hass, who became Rosetta Stone 's chief executive in 2015, after a series of leadership changes, watched the market change very quickly when he took over the reins. Another, perhaps even more significant shift was expanding into schools with a K-12 educational platform. To compete and stay relevant against this onslaught of start-up rivals backed by well-heeled investors like Kleiner Perkins, the company got rid of the boxed CD-rom sets and became a subscription-based business, joining the ever-growing number of companies offering software-as-a-service.
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