Found this article at The Register this morning ("Major labels 'force 70% price hike' on Apple | The Register"). I guess the record executives weren't happy with a sales model that people actually liked, so they thought they'd ruin it by charging a whole lot more.

Highlights: Apple has signed agreements with EMI, BMG, Sony, Universal and Warner that will see prices on some songs rise from $0.99 to $1.25. Many albums will remain priced at $9.99, but some will be priced as high $16.99.

Update: Follow-up article from The Register reports that an Apple spokeswoman said: "We have multi-year agreements with the record labels and our price remains 99 cents a track."