Unless their new format plays on iPods it's going to bomb, a lesson MS knows all to well given that it's usually the one giving it.

Why reinvent the wheel when we already have MPEG-4 (AKA AAC): "No licenses or payments are required to be able to stream or distribute content in AAC format." so while you could argue manufactures don't like adding 20c to the costs of their players it's hard to see an incentive for content producers to push another standard when they already have one with CD like freedoms*, unless that was all bullshit and the new standard turns out to be crippled in some manner but I'm sure that won't be the case at all.

*Fairplay, the DRM most labels still insist Apple applies to their content is simply an extension to AAC, the format works just fine without it, eg EMI content at iTunes.