Part of the reason that MP3 "won" is network effect. Which basically means that they were there first, with a good enough solution, used by enough people who traded files. So if you want to give a track to your friend, MP3 is a safe bet. Just about everyone has something that can play MP3.
I'd love to see a better quality audio format take over... but none of them have traction, or else they're tied up in legal/licensing issues/fees.
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