There is a free version of Onlive called Onlive Game Portal. They do seem to go the Gametap\Xbox Live route with this with offering tiers of services. I think it's a smart idea.
I probably won't sign up for a subsciption. But atleast, I can stream demos for free instead of having to pay for a subscription just to do that. Also, having the ability to rent "select" games without having to subscribe is a smart idea as well so people can demo the service.
I do believe that they will gimp the service for non-subscribers such as the bandwidth. You'll probably be playing demos in 480p instead of 720p like subscribers or they will limit demos to certain times of the day.
It also would be smart for them to offer free rentals of older titles to get people to sign up. I like to hear their promotional offerings. I'm more interested now that they announced the Onlive Game Portal.
Source:
http://blog.onlive.com/2010/03/11/more-news-from-onlive/
"So, I’m pleased to announce the OnLive® Game Portal, a companion offering to the OnLive Game Service that I described on my blog yesterday.
The OnLive Game Portal is for gamers looking for direct access to OnLive games without being required to subscribe to the features of the full OnLive Game Service.
Through the OnLive Game Portal, gamers will be able to play select games directly on a rental basis as well as game demos for free; subject to available OnLive service capacity and whatever usage limits are associated with each given demo. Rentals will be priced on a per-game basis. There is no service fee for the OnLive Game Portal.
We think this is a great offering for gamers to try out games, or if they prefer, play games they’re interested in for a particular period of time. We also think it’s a great way to get a taste of the OnLive experience to see if they want to join the greater OnLive community on an ongoing basis through the OnLive Game Service.
Of course, like all games in the OnLive Game Service, games in the OnLive Game Portal start instantly, are always updated, and don’t require high-end hardware to play high-performance games. It only takes seconds to install OnLive’s small browser plug-in, and only seconds more before you’re playing a top-tier game. And, of course, OnLive Game Portal games will also play through OnLive’s MicroConsole TV Adapter on an HDTV"