Wild fables is a FREE app (you are able to purchase additional fables for .99 cents). You get three stories which are interactive. The Crow an the Pitcher, The Fox and the Grapes and The Ant and the Chrysalis.
Here is a you tube video showing you what the app looks like when it is interactive.
You can watch and listen to a variety of Fables on You tube which are great. This app just adds another dimension and really gets the children involved in the story. As with any of the fables they have a strong moral. As a teacher I would read the stories to the children yourself and discuss what they think the moral means before they then interact with the iPad version.
Below I have added some examples of videos from you tube. It should be noted that even though they are videos they are still a form of text and the same deconstruction and discussion is needed as in a traditional book text. This is important for comprehension.
The Lion and the Mouse
The Fox and the Stork