For many surfers, offers like that will be hard to beat and may indeed be compelling enough to pay for ? especially at that low a price point, which just screams "VALUE!" in this economy (or any other)
The site hits a great (IMHO) niche and offers quality content that even the most jaded "blowout" site surfer will consider, despite the low price
Another site that's getting a lot of buzz is
www.videobox.com
These and other hot properties create a barrier to market entry that our industry frankly never had before.