Bait and Switch is standard US business practice ( And it sucks!)
1. Establish a dominant market position by marketing spend and giving away a valued service.
2. Progressively add money making "features" that no one would have subscribed to if there were not already captured.
3. Put cash in off-shore havens to fund the next step 1.
Optional step 4, remove initial capability ( E.g. remove support for "old" devices)
Apple's progressive "capture of the value added market
Facebooks advert revenues
Googles trawling of your activities to sell you stuff
Microsofts shift to SAAS