My daughter started watching YBCR at 9 or 10 months and was reading phonetically at 21 months. She is proof that kids can figure out phonics for themselves. 

However, my 2.5 year old watched for more than a year and sight reads a little and can't do phonics at all. So, YBCR does not work for all kids. She has lost interest in the DVDs, so I have been doing the Little Reader trial. Hopefully, this will work for her.

My older daughter is now 5 and is a really really fast reader. I think early reading may produce significantly faster readers based on what I see with my older child. I really hope that my younger daughter will learn early enough to have the same benefit.