Does the Music Industry Have it Backward?

Raghuram Iyengar, a marketing professor at Wharton, suggests that the music industry would be much better off if they embraced the pay-per-song model and (get this) actually lower the price per song to be closer to 30 to 40 cents each.

His research shows that consumers would buy significantly more songs at a lower price point. So many more in that that profits would be significantly higher. I wonder if the big labels are listening?