Headsprout

This is an educational web site that uses a subscription model to generate revenue:

http://headsprout.co

The price is really high - you pay $100 to get the first 40 lessons, then another $100 for the next 40. And the web site controls things so that, practically speaking, only one kid can use the lessons. Compare this to the cost of a typical educational computer game on CD at maybe $20 to $30.

Why do people pay so much? Because it is a really effective program. It shows that there is money to be made if you have a good product.