Following Steve Jobs' announcement of an iTunes song price cut on The Wall Street Journal Online, Apple has dropped the price of all iTunes Plus songs (those without any digital rights management) from US$ 1.29 to US$ 0.99 for U.S customers. It was also announced that Apple will be beefing up their selection of songs by adding more independent music labels to iTunes Plus.

While Jobs didn't explain why Apple is dropping iTunes Plus songs' prices, rumor has it that this price drop and the addition of new indie labels is Apple's response to Amazon's DRM free music download store.

This move could further solidify iTunes' reputation as the 3rd largest music retailer in the U.S. We'll have to wait and see if Steve Jobs' current actions will generate more consumer interest.