I am curious how this pricing model affect the publishers/creators. I understand that from the consumer point of view, it looks quite appealing but wonder if for the players in the other side it would be the same. Is the idea that in the long term there will be a bigger user base paying for this new model which translates into a higher revenue stream than the actual one even if they end paying way less compared to buying those titles individually?

You got it right! Since each user is paying less per chapter read, you need more subscribers on the service to surpass the revenue that would have been received with a-la-carte only. And there is a huge opportunity to get more subscribers paying to read than there are people paying under the traditional a-la-carte structure due to the much lower barrier to entry. This is exactly how Crunchyroll pushed the anime industry forward where physical sales are mostly downstream from digital subscription services.