The DVD Forum has chosen AAC for the DVD-Rom zone of DVD-Audio discs. The zone will be used by portable players and includes a lossy encoded version of the album content. AAC was chosen over MP3, Microsoft’s WMA, and Sony’s ATRAC. Details here.

Apple uses AAC with its own custom DRM wrapper called Fairplay for the content on the iTunes Music Store. This announcement does add credibility to the AAC format and will maybe make the world at large realize that it is not a ‘closed’ format as the WMA advocates have been claiming. Fairplay is still closed however, and it remains to be seen if that will become a problem for Apple.

UPDATE:
As pointed out by an astute viewer, this isn’t fully true. Check the comments for the details.

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