Penn State reaches a deal with Napster where on-campus students get free music. Of course, the catch is that they can't burn or download these tracks - unless they pay. So it's really just streaming.
Terms are undisclosed, but probably pretty good for Penn State, since Napster is a late entry into an already competitive market, where all the players' strategies are based on price competition.
Good strategy? Not by Napster. This is basically just a marketing tactic.
Although the idea of selling a small number of communal licenses rather than a large number of private licenses is extremely interesting. Hmmm.