FLACs would be downloaded though, not streamed, right? So artists would probably get paid per download, like mp3s on iTunes or Amazon. It's a technicality I know, but actual plays aren't counted, just the initial download.
Just saw an article this morning about Google getting into the music streaming game, so it's certainly something big business has deemed lucrative (meaning they get to keep more, and pay out less). Pandora and Spotify have been criticized extensively for their small royalty payouts, even as they rake it in as a company.
I see where you're coming from, though: all a major would have to do is sign an exclusivity deal with one of these services and revamp their royalty system. But it just doesn't seem like a smart financial decision, since they'd have to cut the other revenue streams to do it (like mp3 downloads, CD & LP hardcopies). Maybe at some point in the future, but right now streaming services are just one part of their profit-mix. I suppose Universal could always just go BUY a streaming service, too... (god help us...)
