Does this increase in price surprise *anybody*? This is the music industry -- what is their track record with dealing with customers and with the talent they contract to make their product? Why do they ever migrate to new formats? To resell you all the music you bought in other formats and make $$$$. It's clear that $0.99 was a psychological price point, and now with this news it's becoming obvious that they wanted to hook people on the convenience and then jack the prices. The temptation to price this similarly to the CD single is too great, only now they'll be charging the same (or more) for a product with slashed distribution cost, slashed overhead cost, no packaging, reduced quantity of music (no B-side or extra tracks), and lesser audio quality. Sounds like a winner!
$0.99 was too high to begin with, and $9.99 for an MP3 album is ridiculous for me. You can get CD's all day long from BMG and CH for $4 - $5 a piece. Supplement with sources like ebay, buy used, buy online -- the average cost for all my CD's is well under $10. Even if the prices I paid for CD were somehwat higher than MP3, I'd still prefer the Redbook audio, packaging, and the permanence over the instant gratification, thanks.
I never had any use for $1 MP3's, $2 or $3 is a JOKE.