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I’ve got an app that enables end-users to upload their audio files. Mostly songs/music. Currently, I am using Zencoder for my encoding service, which allows .mp3, .m4a, .mp4 or .ogg
When a user uploads an audio file, it will be available for other users to listen too via the app as well. Would the mp3 format be suitable enough for this?
The licensing should be a major concern here. mp3 has some interesting licensing conditions based on whether your service is free to the end-user. Too complicated to go into length here, you can look it up on the web or contact Frauenhofer for more details.
The second obvious concern is bandwidth and audio quality. The sampling has to be high enough that the end-user cannot tell the audio has been limited or compressed, but the file still needs to be small enough that the file can be downloaded or streamed quickly. Any broadband connection these days can handle a 320kbps mp3 fairly easily.
Hopefully this will give you some good starting points for research:
wikipedia:Comparison_of_audio_formats