Tell me more about it, got me curious.

Yep. someone has to pay for the RAM and CPU/GPU capacity that the streamed games use. Cloud CPU and RAM capacity fees are much much higher than HDD and transfer speed fees.

I think many people are wrongly expecting streaming gaming to cost the same as a Spotify or Netflix subscription (like 5-10€/month), but I would be very surprised if that would be the case. We have examples already, OnLive (rip) and Sony's streaming service. I feel OnLive failed because of their pricing model, it was not lucrative enough to enough people, so they couldn't stay profitable, and people have been complaining left and right about Sony's streaming pricing as well, the last I heard.

OnLive's pricing generally was the same as buying a game from Steam or GOG, ie. 60€ for an AAA game, but you don't even own a license to the game, only a right to run the game on their streaming service.

They had some kind of monthly subscription model as well, but it had only some older/indie games. They still expected you to buy your Batman Arkham City or Darksiders 2 for the same price you'd pay on Steam.