Yes, the component is a rotary encoder, made by Alps. I believe it is of the incremental varity. You probably could implement a push button interface, but it would almost certainly require a code rewrite in the player software. Most incremental rotary encoders send out pulses on 2 different channels per rotation with one being 90 degrees out of phase with the other, resulting in a quadrature signal. They output their pulses at a set pattern, which allows the MCU or whatever is interpreting the pulses to determine direction of rotation. It is definitely different from what a push button generates.

If anyone cares to clarify/ poke fun of my explanation please feel free .

Stu