I have historically not been a huge fan of subscription models, but have come to the conclusion that this is the inevitable direction for virtually
all software. For example, consider this:
- Virtually all enterprises are on a subscription model with Microsoft (using their Enterprise Agreement)
- MS Office is now almost entirely subscription model
- Adobe's Creative Suite/Cloud is now... wait for it... subscription
- ... many more exist, just highlighting a few "big" ones that have recently gone subscription ...
Also, think about all the other programs that you are (potentially) paying for, and threatening to bring your Home Automation to (Apple, which doesn't have a HA solution, but anyway...) iCloud is a subscription for anything but the most basic and almost useless features, Google Drive and storage is a subscription, most remote backup services are subscriptions.
One of the most compelling things about subscriptions to the developers is NOT getting more money as often it is a break-even transition. What developers often like is the consistency of the income. When major release cycles are in play, developers are faced with a boom-and-bust situation (often) in that there is a surge of money upon release and then a trickle as you go further from release. Even if the money coming in is the exact same amount, it is better to rely on $X/month instead of $Y, then $Z, then...
And you are wrong to try to call out Matt on upgrades. If a developer is faced with the boom-and-bust cycle it ABSOLUTELY requires a tradeoff of what to release now verses what makes it into the next full upgrade. In a subscription model it is easier to make a decision to release major features without holding them "hostage" until the next release.
All of the above is generic to the software subscription model - I don't have any inside info on Matt & Jay's particular situation. Again, I am not the biggest fan of subscription models, but I understand the reasoning. Users have been completely spoiled by mobile app's cheap prices and ad-supported models.