I've always been hesitant to pay for this feature as I thought the price has always been way too high. I know Sony wanted to try to recoup as much as they could for their hefty investment into the technology, but I can't imagine they have an attach rate they are satisfied with.  It's time to make some changes. Here are 3 things I think they can do to to make the service better:

1. Price drop. $99/year is still pretty steep.  Sony should drop it down to the same level as PS Plus ($60/year). 

2. Bundle it.  Sony could bundle it with PS Plus for $99/year as part of a double-play bundle promotion, or even a triple-play bundle that also includes PS Vue for $150/year.

3. Replace the 2 monthly PS3 games as part of PS Plus with 2 free monthly PS Now rentals of the owners choice. 

I think if Sony did those 3 things - the service would really take off and be very successful for them.

1. No it is not; that's less than a Netflix subscription for a more demanding type of streaming.

2. Dunno about those prices, but I agree with the concept.

3. Or maybe 1 and 1.

Honestly for it to even get any notice it needs to be bundled with all PS4 consoles for a long while, like get half a year subscription to it.

Change PS+ scheme, instead of online multiplayer behind the paywall, put PS Now as the main benefit of the subscription.

Point 1 and 2. Do you think Sony is pricing the service so high on purpose? It is easy to say just lower the price but all the publishers who allow their games on the service need their cut too. Publishers would need to agree for less while knowing their income from rental service would decrease aswell. Maintenance cost is also something that just cannot be reduced easily.

Point 3. Allowing PS Plus members to choose freely 2 games a month would devalue PS Now subscribtion service, PS Plus members would never subscribe but just wait for the next month for those 2 free games and those who have both PS Now and PS Plus currently would question do they need their PS Now subscribtion anymore. In short it would have negative impact on the subscribtion and rental ecosystem of PS Now.

ps now is a good value in my opinion (if you have the right connection speed)

I'd say fix the input lag. Most of the time it's not noticable but on platformers it's the worst.

Also a 30% or so discount for PS+ subscribers would be pretty great.

Edit: A bundle would be great. 30 days PS+ and PS now subscription with every console sold. 60 days with PS4Pro sales

Add PS1 and PS2 games. It can handle PS3, those should be easy.... right?

I played on an UK account in Norway, thats some distance from the servers... Majorly impressed none the less, almost no input lag and not once did I have any Video or Audio stutter... plowed through R&C Nexus :)

Could imagine the input lag would be non-existant if they actually had servers up and running in Norway, closer to where I live.

I have 100mbit down / 20 up for your information