My son is 3 years old, and he really loves this site! He has always been enthralled with letters, so this is a perfect step towards reading for him. Each one of the 'books' has clickable words that sound them out so he can start to get the hang of that. However, it doesn't actually 'read' the pages to him. He much prefers the little movies and lessons along the way.
This is definitely a website that younger children will love, but it is one that the parent needs to do with the child. Plus, there are fun little surprises if you click on the characters in the story pages!