This is a bad move in my opinion and will only encourage piracy. If you do the math, you'll realize that for someone to legally acquire say, 20GB worth of music (3MB avg.) at $1.00 per song, it would cost nearly $7,000. The thing is that as time goes on, hard drives are only going to be getting bigger and cheaper. Additionally as fast broadband becomes even more widespread it will mean that illegal downloading will become easier and the price factor with eventually decrease to nothing.
How much do you think some TV show is worth to a typical viewer? How about a song? Even though it might be $1.00-$1.29 today, as people get more media with the same investment in space and time the value is only going to decline. Your iPod can hold more, so you want more media to fill it up. NOBODY is going to spend $6,000 on their music collection. Well I suppose SOME people might, but certainly nobody that I know would ever even think about paying that much for something they can get for free (and at the same, or near-same quality). Only a dollar per song sounds pretty reasonable, but if you have a 160GB iPod, filling it up will cost $48,000! $48,000?! Just think of what that kind of money can mean to somebody. Pay off the credit card debt. Get a new car. Remodeling. Any number of major things.
I'd say we are QUITE past the point of something "worth paying for". As soon as a person downloads a song "illegally" they cross an invisible line and are now "pirates". And of course once you do it once, it's so easy to do again. That makes it sound like a drug but it's true. If you can get something easily for free, what's the point in paying for it? The best reason I can think of is if you get a significant amount of value added by actually paying for it. When this happens people become significantly more selective about what they DO actually pay for verses what they download for free. And of course, the media itself is practically free.
Basically I think that if companies what to directly sell their media to consumers, it will have to cost fractions of a cent, and they're going to have to come up with some clever ideas on how to provide it to make it easier than simply downloading it for free. It'll probably have to offer other value as well.
For example with TV shows companies should experiment with broadcasts which actually "upgraded" for the web. The idea is that you put your show online with ads for people to see for free. In terms of music, I think bands should get "distributors" which distribute all their music in very large inexpensive packages. Then the band can offer their music for free download on their website for their casual fans, but while simultaneously selling media and merchandise to their more loyal fans (who don't mind spending a little bit to support the band) with added value. I think there are still many ways to make good money off of media, but the truth is that the pay per unit or copy model is dying and won't be around much longer.