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NATO said:
Wyrdness said:

Online subscription

  • The free game a month is exactly like PS+. As long as you download within that free month it’s yours to keep as long as you’re subscribed.
  • The free download a month is chosen by Nintendo because if they offered all VC games with online the player base would be split and you’d never find enough people for a match. Whereas with this method, everyone who’s downloading the game is part of the same player pool.

http://www.polygon.com/2017/1/13/14266290/nintendo-switch-monthly-games-not-free

Read the linked article this is from a developer who is on the platform, each month you can download a game for free but you can only do it in that month after which the choice of game changes, you keep the game as long as you keep the subscription active.