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1. Onlive game library was just ok. Sometimes not getting big stuff.
2. PS games specifically have some appeal. TLOU alone makes me want to give it a try.
3. Onlive pricing wasn't really all that great. Sony needs to pay attention to Netflix. Offer a subscription rate for access to everything. Yes, onlive has something similar... but for really meh content only.

Keep in mind at this point it seems this is just a merge of what Netflix and Nintendo (VC) have done in their own respective areas. Difference is Sony has a large VC type library plus a large movie/music library as well.

Imagine different tiers.
Games only, Movies only, Music only or some combination of the three. All for one price point.

Only issue I see is if its only old games. Then it needs to be cheap. But if it gets new games too, then it could cost a lot more or new games would only be priced individually, but that would cause an issue vs the PS4.

It'll be interesting to see more.