Reading letters

I guess that Brock is reading letters now. As I'm reading his bedtime stories, he is enumerating each letter and then telling me what the word is. He will say "B - L - A - C- K - O - U - T, that spells blackout"... Now he is not actually reading, he knows the name of the book, and knows that that is the title of the book. The relevant part is that he recognizes the letters AND that the the letters are grouped together to form words.