Flickr has added the ability to embed photos onto third party websites. Recently, Yahoo! revamped the Flickr app on the iPhone and Android and added 1 terabyte of storage free for every user.
The embed option can be seen under the sharing menu. Flickr automatically adds attribution and their logo as an overlay.
Flickr said that they will not compress or resize images. Flickr will track how many views your shared photos and videos get on external websites.
Here is an example of an embedded Flickr photo: