@axod: You're right. This isn't a replacement for 1:1 storytime. But sometimes that's not possible. Like when a parent is on a business trip, or stationed abroad in the military, or with remote grandparents, or in a split family situation.
I'm sorry to be 'down' on the service, but it just makes me kinda sad :/
I guess for parents who work far away, or abroad, it could be useful. Or it could just make the kids miss them more...
Would a kid rather watch a video of an absent parent telling a story, or have the parent who is present read them a story in person? I'd expect usually the 2nd option.