A nice course about 2 miles from me offered a similar deal for several years, except it was like $199 for two whole seasons. The catch was that if one took the two year discounted membership deal - they couldn't play between the hours of 7 am and 11 am on weekends and holidays (unless they paid the usual weekend public rates). The other stickler was that carts were mandatory, and cart fees were $25. No walking permitted, not that most people would want to walk the course anyway because it's got several fairly hilly holes. This course was never designed to be walker-friendly.
What management eventually figured out was that the only people most interested in the deal were those who played at least 2-3 times per week or more. So the facility was at-best breaking even on the deal, and that was assuming that players would come in and spend money on drinks and food, of which many were not. They were just there for the golf. They were hoping that the once or twice per month players would deliver the payoff, but it never materialized. So they ended that deal a few years back.
But they still have a really good annual membership deal now. $995/year, up to two week tee time reservations in advance, unlimited complimentary use of their main practice facility up at the northern end of the facility (which is very nice - grass or mats, nice huge practice green), and unlimited complimentary use of their par3 course right next to the main practice facility. Cart fees are $20 (or were last season). Those who want to walk the course can, without having to pay for a cart, anytime except the prime weekend tee times/observed holidays that extend up until noon.
Very nice layout, with more of a modern parkland design on the opening nine, and more of a linksy, open feel on the back nine. Carts have GPS and free warmup balls at the range near the course, except it's mats-only. And a complimentary bottle of water, as they've joined the ranks of a majority of public courses in this area to do away water coolers every 6 holes due to liability reasons.