FLAC is a free lossless compressed audio format which supports streaming and archival. The FLAC project maintains the format and provides a reference encoder/decoder and input plugins for several popular audio players.
...It reduces the bit depth which adds a predetermined level of noise to the output. The bitrate of the FLAC encoded lossyWAV output is significantly reduced compared to the lossless FLAC original.
WavPack is a free, fast, flexible and featureful encoder and decoder for audio streams. Besides lossless, it can perform lossy and hybrid (lossy+correction file) encodings.