Thsi point is the ignored deal breaker that has killed all other formats that attempted this. If it won't play on any of the following, it's sales are already in decline.
Common MP3 Players
DVD players that play MP3 CD's
Computers Windows, Linux, Apple
Cell phones Android as well as Apple.
Only formats with compatability at a reasonable price will sell in volume.
Unique formats that require a specialised player will have very limited market penetration.
Do I need to list failed formats?
Sony Minidisc with serial copy protection
Microsoft Zune and protected WMA formats
Apple Itunes copy protected format
The Apple format had a reasonable market penetration because they were the first to market with a legal format, but had to drop the protection when other players entered the market at lower prices in more universally playable formats. Apple tried to market the unprotected verson at a higher price, but that was short lived too.
My questions are who is going to produce the compatible players that people will actually buy? Will the player play legacy formats that are not protected? This is important as a new player that won't play existing libraries won't sell much. Will the player import the legacy formats into a protected format? If so, this will cause a backup and archival issue. Will it be compatible with MOST in car infotainment systems?
Many cars have the ability to "Play" MP3's on a USB Thumb drive. How are you going to sell into this market?
Another incompatable format has a high barrier to market entry. Good luck.