The City of Heroes Website announces that City of Heroes Freedom will launch later this year, brining a free-to-play component to Paragon Studios' MMORPG. This will be a hybrid method which will still include subscriptions as well as the ability to play gratis. There's an interview on the topic on Gamasutra, and here's word on what this means to existing subscribers:

All current City of Heroes subscribers will automatically be upgraded to VIP accounts when City of Heroes Freedom launches. When City of Heroes Freedom launches, you will continue to enjoy all of the subscription benefits and content you enjoy today, as well as brand-new exclusive rewards, features, and services. Additionally, beginning on July 1, 2011, you will earn 400 Paragon Points each month. When City of Heroes Freedom launches, you will become a VIP player, and you will start with a tidy sum of Paragon Points to spend in the new in-game Paragon Market.