The program was updated with every set release at no cost to the user.” Once you purchased the program, all the cards were free - you simply ‘marked’ the cards you had in your paper collection and used those to build decks and even play games (although it is unclear exactly how gameplay worked). “They had just released the Magic Interactive Encyclopedia, which was designed to allow for digital deck-building.
Wizards was already thinking about a digital version of Magic at this point, says Saffron Olive at MTGGoldfish.