E-Book of the Month Club

I've heard people talking about this as a possible business model:

People subscribe to the club for a monthly fee.
Each month they receive a new e-book sent directly to their Kindle, Nook, email, or whatever.

It's an update of the old book-of-the-month club idea. I'm thinking that we could do something like this through Spencer Hill. We could have an online store where people could buy the stories individually, although subscribers would get them for a lower price.

Sooo.... what do YOU think?

How much would you pay per month for a novella (15,000-40,000 words, which would be about 60-160 pages in traditional book form) to be sent to you?
What genre(s) of stories would you want to read?
Writers, would you submit novellas for distribution this way? We'd pay fair royalties and writers would retain copyright, of course.

Personally, I think that the main selling point would have to be quality content. We'd need the stories to be AWESOME. And then we'd have to market in such a way that people heard about it and recognized the aforementioned awesomeness. The shorter format is a plus; people are reading more on their phones and e-readers and the novella length makes it easier to finish in one sitting.

The thing is, I KNOW how many really good writers there are in this online community. The awesome content is out there; it's simply a matter of getting the butts in the seats, metaphorically speaking.

Tell me what you think. If people are really into this, I'll explore it further.