I havent got mine yet but i believe ive read that its so you and a friend can both listen to a movie soundtrack for example. Perhaps someone can verify?
I'm pretty sure you've got that right. In the past I've bought splitters for ipods etc. and found them really handy for when your on a plane for instance. I think it also means you can have speakers and headphones plugged in at the same time so you don't have to keep unplugging one or the other.
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