Meridan announced its new Master Quality Authenticated (MQA) format at the start of the month, a more efficient coding method which claims to allow for studio-quality files that require much less space.
The announcement promises to enable not only high-quality downloads that take-up less space but also allow for the possibility of high-resolution streaming services.
7digital, which powers a number of streaming and download services, has now confirmed it will adopt Meridian MQA.
Simon Cole, CEO of 7digital, said: "MQA is a revolutionary new development in the journey towards serving consumers the purest high resolution digital files.
"MQA, which will be available in early 2015, delivers the quality of original studio recordings so cleverly and efficiently that it can be conveniently streamed or downloaded. I truly believe MQA will become the standard for high quality streaming in the years to come."
Tidal and Qobuz have both upped the streaming standard to CD-quality lossless audio, while Spotify's CEO hinted the company might follow suit, but it seems high-res streaming could soon raise the quality bar once more.