Yup. They discovered that continuing a subscription model is an excellent alternative. Although it's not an alternative, of course - they do both. It's worth noting that their subscription model partly works because they had a massive customer database after WotC's magazines shut down and were able to successfully transition the adventure path model from DUNGEON magazine over to standalone products. I'm not sure anybody else could have done that. Many magazine subscriptions simply transferred over to the APs.
Our customers were used to getting something from us every month and we didn't want that to end. But starting a new magazine was not the way to go. Even if we had wanted to try to replace our venerable magazines, we just didn't have the cash reserves needed to make it happen. Besides, the magazine industry isn't what it used to be, and the profit margins on magazines are razor thin; I was very tired of fighting all the inefficiences of that product format.
So we took the thing that was working the best—the Adventure Path concept—and reshaped it into a 96-page softcover book that would provide a full AP over six consecutive monthly volumes. The front half of each book would be the Adventure Path, while the back half would house support articles and a short piece of fiction. In many ways, the front was Dungeon and the back was Dragon. The new book had the same number of pages as an issue of Dungeon, but since it didn't have all the advertisements, we actually had more content to develop each month. Also, it took 12 issues of Dungeon to complete an AP, and we were now attempting to do it in half the time. This task was going to be a tough one.
After much brainstorming, we eventually gave it the name "Pathfinder."