Its not even clear whether the format actually uses the same compression method as the original MP3 does -- it is actually highly unlikely, as the competing formats, such as AAC (that Apple uses in its iTunes and iPod) and WMA (Microsoft's audio format that virtually all -- apart from iTunes -- legal music stores use), achieve better compression rates than MP3 does (after all, the format is over 10 years old).
Biggest obstacle in Thomson's plans is absolutely the compatibility issue, as it has to persuade hardware vendors to implement support for its format in their devices before it can have even slightest change of gaining any market share in online music biz.
Source: TechNewsWorld