Functionality was found in OneDrive source code

Microsoft launched its Xbox Music service in late 2012, and it allows users to stream music to your devices (Xbox 360/Xbox One, smartphones, tablets, PCs) in exchange for a monthly fee. However, the service is currently limited to tracks that Microsoft actually provides via its vast library.
While Microsoft’s music library is no doubt comprehensive, it’s nearly impossible for the Redmond, WA-based software giant to have streaming rights to every possible song that you would want to listen to at any given moment.

And this is where OneDrive comes into the equation. According to LiveSino, Microsoft is working on functionality that would allow you to upload music that you own to OneDrive and stream it to all of your devices via Xbox Music. The following reference was found in the source code for OneDrive:
Meet your OneDrive Music folder. Upload your music files to this folder, so that you can play them via Xbox Music from any of your devices. You can also add files to this folder using the OneDrive app for your computer.
It is unknown when the Xbox Music/OneDrive mashup will go live, but similar functionality is already available with Google Play Music and the Amazon Cloud Player.

Sources: LiveSino via, The Verge

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