RealNetworks to Offer Student Discount

RealNetworks Inc. said Monday that it would begin offering a steep discount on its digital music subscription service to some university students in an effort to stem illegal downloads and attract long-term customers.

The Seattle company said it had struck deals with UC Berkeley and the University of Minnesota system to offer its standard Rhapsody service to students for $2 to $3 a month. The service is normally $9.95 a month.

Richard Wolpert, RealNetworks chief strategy officer, said the company worked with record labels to make the cheaper service feasible. He said it would still be profitable. Wolpert said the company also hoped to attract more universities to the deal.

Roxio Inc. also has struck deals with some universities to provide discounted services.