Yes, but note that flv often doesn't play as smooth as avi files.

There is another consideration, and that is long time stability. Generally I think that a link pointing to a small wrapper playlist is more stable than having a direct link to a stream.
You will notice such a wrapper playlist when playing it in kmplayer, the item becomes a folder with one or more links below it.
It's often hard to tell from the link whether its a wrapper playlist or not, asx/mov/pls/m3u/wmv/rss file extensions often indicate it.
Wrapper playlist links often don't change, only their contents is. So if the server extends their capacity, wants you to use a server that is near you or not so busy, they can generate a suitable content at any time.