The new format could mean that users can get "high-definition" audio by downloading to an iPhone, iPad or iPod Touch. Alternatively, it could offer a streaming service like that of Lala.com, the music streaming and online storage company, which Apple acquired late in 2009.
The format would presumably work like HTTP Live Streaming, a protocol developed by Apple, in which the source file is split into segments each encoded at several different qualities. When a file is being played the stream will adapt to your connection or device by playing the appropriate quality segment.
It's believed that Apple will use the new file type for iTunes Match and iCloud. The company has reportedly asked a London studio to prepare audio files for the new format.
"All of a sudden, all your audio from iTunes is in HD rather than AAC. Users wouldn't have to touch a thing their library will improve in an instant," said the source, who requested to remain anonymous.
Read More [via Darryl]
[HTTP Live Streaming]