At first I thought the same thing. But if you'll bear with me for some back of the envelope math, with 2 million members paying an average of $5/month, that means they're bringing in $120,000,000 a year. That's a multiple less than 6x of revenue, hardly that outrageous.
Key to subscription based businesses are retention and cost of customer acquisition. Which, I predict for this business with no knowledge about the industry at all, are low and high, respectively.
