Apple has negotiated deals that will allow iTunes to offer songs free of copy protection software from the three largest music labels.

The move has not been announced yet, but CNET is quoting two well placed sources close to the negotiations. However to get the deal, Apple has had to budge on its 'one price fits all' policy.

It looks like song prices will be broken down into three categories; older songs, midline songs, newer songs that aren't big hits, and current hits. Apple has offered songs free of digital rights management protections from EMI for more than a year.

The price of catalog music is falling to 79 cents per song. The labels will get an opportunity to price some hit songs for more than 99 cents but eventually those songs will drop to 79 cents.