Doesn't raising prices when the economy is so bad seem like a bad business decision? Doesn't raising prices when the public is loosing interest in music seem like a bad idea? Doesn't it seem like the music industry can't get out of its own way? Don't you think that all the other music services will raise their prices now as well?
Certainly this wasn't the work of Steve Jobs. You know that he's held the 99 cent line all along, but after years of prodding, cajoling, and whining, the labels finally got what they wanted.
So 48 of the top 100 songs on iTunes are now priced at $1.29. What do you get for the extra money? The privilege of buying something new (not so great) and 320Kbps encodes (pretty good).
It should be noted that both Amazon MP3 and the Wal-Mart music store also raised their prices, but the majority of songs that did raise to $1.29 came from Sony Music. EMI chose not to raise their prices at all.
Let's see what happens to the download numbers next week. I have a feeling that the downloads off the Torrents are going to increase.