Apple, and major music label EMI, have made the groundbreaking decision to offer DRM-free track for $1.29 per song through the iTunes Music Store. EMI will make available all songs from its digital catalog without DRM (songs will not be tied to the iPod or iTunes anymore) so that any device that plays AAC can play these tracks.

Testing earlier this year suggested people prefer non-DRM to DRM tracks 10:1.

Tracks will be encoded in 256kbps AAC (currently its at 128kbps) and sold at a $0.30 premium per song ($1.29 vs the current $1 per song). Customers can choose whether they want the DRM, or higher-quality DRM-free versions. Entire album purchases will stay at the same price, but you'll still have the choice between the two versions.

Apple CEO Steve Jobs says they are trying to do similar deals with other labels, and expect that by the end of this year 50% of all of their tracks sold will be DRM-free.

This is huge. 

[Press Release]
[Read more on TechCrunch]