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From a production standpoint, it's certainly viable. The creator develops a story broken up into daily-digestible chunks. They have the choice of writing the story on the fly and releasing it as they go, or writing it in total and releasing the daily portions afterward. If the story is done and being released daily, they can be working on the next project. Get a dedicated audience going, and you can have a steady income coming in.
The biggest catch is getting them hooked, then getting them to agree to a daily payment, or what amounts to a subscription, to follow the story. If it's a daily payment system, it better be robust, in order to handle a large number of micropayments potentially in concentrated periods (morning rush, lunchtime, evening rush).
And would you charge for all of it, or offer some part of it free to entice readers? How much would you offer? If your future stories involve the same characters, do you need to offer free material for each story, or just the first one?
Lots of interesting questions.
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