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MP4 is a video file extension, apple's music file format extension is M4A. But we're splitting hairs on a moot point anyway as the issue is formats for eBooks and epub is clearly the way to go. Not even Apple will bother with a competing format as their is already software for the iPhone to read epubs.
The big question is when will Amazon release a kindle (or firmware upgrade for existing models) to support epub, they have no choice but to fall into line in the long run. If they had any sense or cared about their customers they'd also offer people who have purchased books from them in the past the ability to re-download their books in epub format. For the small amount it would cost them (relative to the the depth of their pockets) it would do a hell of a lot to improve their reputation amongst their customers, existing and prospective.
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