In an age when stories are told across a multitude of media and platforms, listening to stories continues to have enduring appeal to children. Exploring and promoting the power of audiobooks has never been more important. The pandemic and lockdowns of 2020 and 2021 have caused unprecedented disruption to schools, acutely impacting children and young people's education, opportunities and wellbeing. At the same time, developments in digital technology have exploded the audiobook landscape, with more devices and entry points than ever for children to hear stories. In this report, the authors will explore what this might mean for the literacy of children aged 3 to 8 at a time when innovative solutions are more crucial than ever. The study found that the use and production of strong characters and the role of interactivity and play-based engagement can help maximise the literacy outcomes such as empathy, comprehension and reading enjoyment.