The New York Post claims that the five major record labels have been in negotiations with Apple over pricing as well as other issues surrounding Apple's onling music store (iTunes).
Under the new contracts, the most popular singles could rise to $1.25 according to the Post's sources.
During the iTunes conference call, Steve Jobs addressed the question of album pricing:
But in any event, most of the albums on iTunes are priced at $9.99 and below and, no, they're not creeping up. There's always a few that are a little higher than you can go in and pull out, but they're very, very competitive and we see in the future the prices of the albums coming down, not going up, because that's what it's going to take to sell more albums and it's in everybody's best interest to do so.
Update: Apple has denied that prices will increase.
