hi sunshine, I'm not exactly sure what goes on with AAC, but I know that apple uses it in the Ipod. I believe that AOL streams music in aac+ as well, because 16 kbps audio from the internet with things like winamp radio and such is much better than would be mp3. AAC is not being developed by apple, there's a separate group that's doing that. it's also used for streaming on cell phones, and some cell phones allow you to use it instead of mp3 in their media players saving space.
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