It depends on what you mean by "read". Yes, the program works in the sense that a baby/toddler can memorize some short words and therefore read short baby books and some common label words (coat, tv, shoe, dog, etc).
However, most educators will agree that, that is not entirely 'reading'. True 'reading' involves comprehension and being able to generalize what you learn and using phonics. For example... you teach a 5 year old how to read the word "cat" and the next time he sees the word "hat" he knows how to read it even though you never taught him that. He took the rules of phonics, combined with the letter sounds that he knows and sounded it out. This is why a kindergartener can sound out a long word like 'astronomy' even though they never saw it before (my son did that).
Many many studies have been done over the past 20 years on the advantages and disadvantages of teaching babies/toddlers how to read. In short, there are few advantages (something like 99% of them are equal/average to their age peers by 3rd grade) but MANY disadvantages. The disadvantages are things that most parents do not realize because they do not recognize the importance of the stuff they do not know as well... peer interaction, social skills, imagination, problem solving, pre-reading & pre-math skills (sorting, grouping, patterns, etc), etc. The best way to teach your child how to read is for him/her to have a solid understanding of those basics -- which most kids learn through free play (and a little guided play) by the time they are age 4-5. The kids that are taught how to read early have less free time (in today's busy schedules, even missing 20 minutes a day is big). Once down, they can learn to read very rapidly.... most kids in my son's kindergarten class couldn't read at all the 1st day of school but by the end of the year every single one of them were reading chapter books for 3rd grade or higher (this was in a public school).
A great book to read is "Einstein Never Used Flash Cards". It has the science and numurous studies to back up the invaluble lessons kids learn through free play with multiple age groups. As they put it... the best way for your child to learn is to set them free in the backyard or, better yet, the local playground with new kids with little direction and interaction with the adults. Kids learn problem-solving and how "think outside the box" with open-ended toys and free play -- that is the number one best thing to teach your baby/toddler because he will use it for everything else he does in life. Some studies have shown that kids who learn to read early (and miss out on having alot of free play) actually do >worse< in school after 4th-5th grade - simply because they haven't developed a good set of problem-solving skills and have difficulty using what they know to extrapolate solutions for harder situations.
And just FYI, my son learned to read in kindergarten and is now reading at 8th grade level (just started 2nd grade). My oldest daughter just turned 4 last month and is reading a few words because she taught herself and learned the old-fashioned way -- asks us to read the same books over and over so she has it memorized and when she 'reads' to herself she points to the words as she says them. She's been asking to learn to read so last week we started teaching her the sounds to letters that she doesn't know... phonics is the building block to sounding out words. We are not pushing it but not holding back since she's asking to learn.