Thanks for the replies! It's helpful to know this happens with other kids.

Last night I tried doing the Raz-kids website with him and I covered up most of the screen with an envelope so that he only needed to look at the line he was reading. This worked much better than using a finger, or even a ruler! I think it's partly losing his place and partly being discouraged by the amount of text.

But working this way he was able to read much more quickly and we got through another book. Yay!

Oh, and when I mentioned this to DH he said that he used to do this as well (with books).

I'm going to email his teacher about it and maybe she'll stop implying he's lazy only wanting to listen to the books.