Update: Gizmodo confirms the announcement. The good news: CNET has sources saying the three largest music labels will allow Apple to offer music downloads free of copy-protection. And the bad news might not be that bad.
In exchange for the DRM-free tracks, Apple will reportedly allow labels to push three tiers of pricing. Older songs from the archives will likely get cheaper than 99 cents, songs that are newer and “midline” (i.e. not big hits) will inhabit the familiar 99 cent mark, and newer, bigger hits will fetch higher, unnamed dollar amounts.