This NY Post article talks about the pricing negotiations between Apple and the music labels has the great quote (referenced as the title):
“Where in life does the retailer set the price of the content?”
Ironically, the anonymous speaker is correct and completely misguided. He is correct, because the retailer does not set the price – the customers set the price, by buying or not buying. He is misguided because he believes that the record labels set the price.
At the end of the day, I submit that Steve Jobs knows more about the willingness-to-pay of the iTunes subscribers than Edgar Bronfman Jr.