Apple drops price of DRM-free iTunes
This report was updated midday to reflect that Apple has confirmed the DRM-free iTunes price drop.
Apple has dropped the price of its iTunes Plus songs that have no digital rights management (DRM) software protection and allow owners to move song files freely from one device to another.
The 256kbps DRM-free song files were originally priced at $1.29 per song with a lower per-song average price for buying an entire album. iTunes now seems to be offering the same files for 99 cents per song, the same price it charges for its usual 128kbps DRM versions.
"iTunes Plus has been incredibly popular with our customers, and now we're making it available at an even more affordable price," Tom Neumayr, senior manager for iPods, Apple TV and iTunes, said in a statement. "We're adding over 2 million tracks from key independent labels, in addition to EMI's digital catalog, and look forward to even more labels and artists making their music available on iTunes Plus."
The change closely follows Amazon.com's launch of its own digital-music store.
As of September 25, Amazon.com began offering 256kbps DRM-free MP3s for between 89 cents and 99 cents each, depending on the song.
While Apple has made no formal comment as to why it's decided to reduce its DRM-free iTunes prices, Amazon's new music store could be the reason.

so. I appreciate all the new serious comitition in this market, its all better for us.
;D
With not offering a subscription service choice, and now being undercut by a reputable company like Amazon, I'm falling a bit out love with iTunes. Is it just me, or are they sitting on their lead a bit too much?
reason to buy from iTunes." Rubbish. Complete rubbish. I say "Why not?"
With DRM-free music at the same price as amazon.com, why use a third-
party when iTunes' integration, particularly on a Mac, is superb. Unless
amazon's selection were considerably larger than Apple's, what's the
incentive to use amazon and an Apple iPod -- or any player for that matter -
- when Apple's solution works great.
Is it simply that people think Apple's too big for its britches in this space?
Give 'em a break! They made the music business what it is today, and their
products are much closer to perfect than most other crap out there.
So what's the beef?
As of 10/28/07, AIR's "Pocket Symphony" album is $11.99 at iTunes, and only $8.99 at Amazon. For the same thing.
Sure, iTunes individual songs are now 99 cents, but they're 89 cents at Amazon.
What's the beef with Apple?
Apple did not reduce its prices on iTunes Plus until the price-pressure from Amazon came.
You can see where Amazon is lighting a fire under iTunes, which has been a good service, but has room to improve.
Many people would like to encourage competition.
And I'm still waiting for a music subscription service option from iTunes, which Steve Jobs says I don't want.