My my my. Does one jump into the hornets nest on their first post?
Concerning the "expert", I very much have doubts about their expertise. When you have been around true experts, you notice things. Clear, concise, few necessary references, talk in pros and cons, specifics, etc. I see some of that, but not a lot. Experts rarely arbitrarily say they are the best. They let their words speak for themselves.
Audio over an IP network needs to be broken down into at least 3 types. Real-time audio such as VOIP, conferencing, screen sharing, even in large real time studio applications. Compressed, streamed, and buffered music. Uncompressed, streamed and buffered music.
Different protocols are used for real time audio versus streamed and buffered. With real time audio, packets can be permanently lost. This is acceptable in the protocol as latency is more important than anything.
With streamed and buffered audio, which is what streaming services would fall into, lost packets will be re-transmitted with the net result being all packets, except very rare circumstances, will be delivered to the receiving end. I can't speak for the internals off all the apps/Win/OSX programs out there, but I have seen comparisons showing streamed and CD were the same. I would expect those streaming services in conjunction with their receiving programs use a variety of error correction and re-transmit techniques to minimize overall bandwidth where possible. With compressed, and I don't mean FLAC, the service does have the option of dropping information to reduce bandwidth.
Do IP networks drop packets to manage bandwidth? Absolutely. That does not mean they are never delivered though. That just means that particular sent packet was not delivered. It can be resent till it gets through.
It is guaranteed that the protocol between your local server and end-point is using a fully recoverable protocol, i.e. not total packet loss? If the product is using a standard protocol like DLNA and approved you can be sure of how it behaves. I am sure our expert can chime in on that. If proprietary, no comment.
UDP has no guaranteed delivery mechanism. TCP does. If you are using a TCP protocol, there is inherent functions built in to guarantee delivery no matter what the application does. UDP does not guarantee that. TCP allow setting up secure connections. UDP does not. You can make your own conclusions about paid streaming services and use (obviously TCP). UDP does support broadcast messaging, but normally only used for discovery.
We know that TCP is used by all major streaming services, and that pretty much guarantees in most cases all packets arriving, with application layer taking care of the rest using buffering. What is happening on your local network? Could it be UDP? Maybe. I do know in my own network, I have pretty no losses, so it really does not matter to me.