GameTap had a Decent collection of Sega consoles and arcade titles back in the day, though it unfortunately never got off the ground. Nintendo has been particularly aggressive regarding ligating against ROMs historically and sold them as individual units, though with the Switch's online service's free NES/SNES games it seems like they're dipping their toes into the model. I think the risk to them is if someone winds up playing say the GB version of Link's Awakening for free instead of the $60 remake.
I worked on GameTap! Old ROM websites at the time had these click-through agreements that would say things like "you may only download these ROMs if you have explicit, written permission from the publisher" and I may be on of the only living people who've clicked one of those "I agree" links in good faith.
Technically, GameTap had some really neat little features. For example, it would track your high score for most emulated games, and for really old games where the score would rollover to zero, it noticed that and would let you see your effective grand total score. So there would be a global Galaga leaderboard that could happily go into the millions.
Regarding the success of the service, Gametap was live for a few years. It totally had its shot. GameTap was regularly advertised on TV. It had a pretty big library covering a dozen or so platforms: Several Ataris, ColecoVision, Intellivision, Sega, PC games, and more. They did a few high profile things like buying some failed MMOs and keeping the servers running for all GameTap subscribers.
At the end, I think it turned out that the folks who get really excited about playing ColecoVision games are the same folks who are very comfortable downloading ROMs.
Reading back I definitely come off a bit too harsh on gametap - It was a good service from the start. but I remember it seeming like there was trouble figuring out a pricing/content model that worked, as you said a lot of people who were excited for those sorts of games are often able to download roms as well.
I think it may just have been ahead of it's time in terms of model in the era of battlepasses, paid online and gamepass, as well as monthly paid streaming services in general.
It's true. It was a plausible idea that certainly MIGHT have worked, but whatever form of the idea GameTap went with clearly didn't catch fire.
Here's a fun technical secret about GameTap. Several of the companies that we bought licenses from barely knew they owned the games and definitely didn't have any original binaries or source, and for the obscure consoles/titles, we sometimes could only find cracked versions online. Those would usually have crack intros (it was the birth of the demoscene!), though, and we clearly didn't want to use them. Ultimately we cheated. We just launched the game by loading a save state just past the crack intro.