$12 is still too much when you can get it for free on P2P or from a buddy who was dumb enough to buy it.
My solution that will never happen:
Set up terminals, much like ATMs, all over the place--in malls, at shopping centers, inside the doors at a grocery store, etc. They would be hooked up to the internet so music companies could transfer WAV files to them. You could then go to the machine, drop in a couple quarters, and put in a disc to burn the song on. You would have the option of a WAV file or MP3 file and, if you chose an MP3, what bit-rate you wanted. Next, insert your disc, hit Enter, and let it burn. A few seconds later you'd have the music you paid for, and the record industry could skip the retailers and make a fortune on their own. The machines could also have Firewire and USB 2.0 ports for downloading directly to an MP3 player.
This is the best idea ever for cheap and readily available music, and it will
never be done.