Napster (NSDQ: NAPS), the online music service, has quietly increased its monthly subscription prices, from the previous $9.95 a month to a relatively big jump to $12.95, a jump of 30 percent, according to an e-mail it sent out to subscribers. It says this is the first price change in four years, and will take effect beginning on January 30. It is offering current members the same old price if they sign up for another year.

Meanwhile, Bear Stearns initiated coverage on Napster today, and came out with a report which said, not surprisingly, that “the pure-play music business faces significant challenges.” The report says the market is in a wait-and-see mode, seeking more visibility on the company’s evolving mobile music initiatives, though current mobile deployments are limited. The note also says the company has about $70 million in cash - the company’s market cap is only $91 million.

• Update: Earnings: Napster Revenues Increase 24 Percent in Q2; Subscribers Up 44 Percent; 10-Q