AAC beat Microsoft's Windows Media 9 format, MP3 and Sony's ATRAC because it "sounded better than the others".

In order to ensure DVD Audio playback on personal computers, the DVD Forum has proposed the inclusion of a DVD-ROM 'zone' on each DVD Audio disc, which the PC-based player will read in preference to the main audio area. That DVD-ROM will hold compressed versions of the songs encoded in DVD Audio format, and its for these compressed tracks that AAC has now been chosen.

In addition to its superior sound quality, the format was selected for its support for both multi-channel audio and DRM. Apple uses the latter to protect tracks bought from ITMS. AAC doesn't inherently feature DRM, but its file structure was devised to allow the addition of DRM-related control data.

Just as DRM is optional within the AAC file, so too is the DVD-ROM zone within the DVD Audio disc. However, the fact that it is there as a choice for music labels to use should encourage more portable music player makers to build AAC support into their devices as Apple has with its iPod. AAC is also part of the MPEG 4 specification.