As expected, some songs in the iTunes store are now selling for $1.29, marking the first time since iTunes was first launched that songs have been priced over 99 cents. As of now, 10 out of the top 20 songs on iTunes are currently selling for $1.29 a pop.
Record labels have long wanted to experiment with tiered pricing on iTunes, but Steve Jobs and Apple held onto the 99 cent price point for as long as they could. Eventually, Apple acquiesced to record label demands in exchange for drm-free songs, and more importantly, licenses to allow wireless music downloads.
One of the reasons iTunes became so popular was that it provided users with an easy and cheap way to get music. 99 cents for a song seems like nothing, and buying 15 songs in 5 minutes on a whim is probably something a lot of people can relate to. That said, some are questioning if a higher price point for more popular songs will slow down consumers purchase habits. Though only 30 cents higher, $1.29 seems a lot more significant than a measly 99 cents.