When downloadable content first began to become prevalent, it was called paid downloadable content. However, the ratio of paid versus free content was so lopsided that the P in the naming scheme was dropped to just DLC.
Valve, in their pattern to go against the grain, is releasing extra content for Portal 2 for free. The downloadable update will be simply titled, Portal 2 DLC #1. Details so far include new test chambers, leaderboards, a challenge mode for single and multi-player modes and more.
Microsoft has been resistant to allow Valve to distribute free content for the Xbox 360 (such is the case of no console updates for Team Fortress 2 after the release of The Orange Box). Normally Valve releases their downloadable content for free for the PC, but Portal 2 DLC #1 will be free for the Xbox 360, PlayStation 3, and PC this summer, for science.
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