Default subscription for registered users

on Options > general tab

Default subscription for registered users

Select default subscription which will be assigned to a registered user, which does not have any access level.

would this be if a person landed on the site and registered without choosing a subscription when registering?
or just users that are already registered on the site?

Assign first subscription level to new users
Added on new user registration only

is this relating to New Users registration?

https://docs.google.com/file/d/0BzKhIonphm62QjlfUXZ0Rnk2Q00/edit?usp=drivesdk