Apple confirmed it will indeed lower the price on its DRM-free tracks to 99 cents, from $1.29, on all iTunes Plus music. Apple CEO Steve Jobs confirmed the move in an interview with the Wall Street Journal.

Jobs told the WSJ that the iTunes Plus option, which offers unprotected tracks at a higher-quality bitrate than other tracks on the iTunes service, has proven “very popular,” but gave no specific reason for the price cut.

The leading speculation is that the move comes in the face of Amazon.com launching its DRM-free music service with prices as low as 89 cents a song, and albums for as low as $5.