OnLive drops subscription fee

In an inauspicious move following its launch, OnLive has dropped its subscription fee for the first year. By dropping their monthly fee, the company stated that they could focus on providing fast, meaningful content to gamers.  Quoth a company official, “We’re excited because this opens the door for the OnLive Game Service to be used by everyone whenever they feel like it, whether for playing a full game on OnLive, or for just instantly playing a demo before buying a game for a console or a PC. Or, even for people just wanting to spectate games in the Arena or friend other gamers. Whatever interests you in gaming, OnLive provides it instantly, without complexity or hassle.”

So, is this a legitimate business decision or damage control for low subscription numbers?