Does anyone know why the majority of the songs on iTunes cost $1.29 ?

Here is an article submitted by Apple in 2009 - http://www.apple.com/pr/library/2009/01/06Changes-Coming-to-the-iTunes-Store.htm l

There is also an excellent explanation as to why this change occurred and it is just what i expected.

"

Why change now?

For years, the four biggest record companies have clamored for more control over pricing on iTunes. Apple relented, presumably in exchange for the right to sell songs stripped of copy protection software.

The big question is what the new prices will mean for Apple and the music industry.

After doing numerous tests, the big labels are confident that music fans will pay $1.29 for hit songs, according to industry sources. But in these uncertain times, determining what kind of revenue this might generate is unclear, the sources said. The recording industry is hoping that charging 30 cents less for older titles than iTunes' traditional 99-cent standard will reinvigorate sales.

It must be noted that most of the prices on iTunes are unchanged or reduced. Brad Stone at The New York Times found that of the 100 best-selling songs, only 33 are now selling for $1.29.

Of course, the music industry is trying to make up for dwindling CD sales and the losses from illegal file sharing. A lot of digital-music fans see the struggles of the recording companies as self-inflicted. They are unlikely to dig deeper into their pockets just to help the industry.

Music fans likely will do what they have always done; pay for those songs they value. Most certainly, they will vote on iTunes' new pricing with their dollars."

--CNET

This is common knowledge, but i wanted to know why Apple has decided to raise it to a higher price when it was .99 cents before. Now you get less songs for your money. Amazon Digital Music has also done the same by raising the prices. I wonder if it's an economical issue?

That seems probable to me .