"Those can deliver more features and a higher audio quality at much lower bitrates compared to MP3," the institute said. AAC is now the main format for services such as iTunes and Youtube files.
While the developers have bid farewell to MP3, the format remains popular for those using retro iPods and MP3 players.
MP3 was developed during the 1980s and 90s, becoming the standard file type for audio and proliferating online music downloads.
While the initial aim had been for a way to deliver music signals over telephone lines, the team of six researchers ultimately developed the widely proliferated MP3 code.
The format later became popular for music players such as Apple's iPod on its 2001 release, selling millions of copies. MP3 took up 10 per cent of the storage space of files, a massive reduction at the time.
As well as leading to major product breakthroughs, MP3 also saw the proliferation of peer-to-peer file-sharing sites such as Napster and was a major catalyst in the rise of illegal internet downloads and digital piracy.
