A HTML5 music player had been built for Skydrive by interns about two years ago but there were never any plans to actually put it into the final product.
That is correct. About 2 years ago we had a bunch of interns here and one of the projects they came up with was building an HTML5 music player in SkyDrive. We never actually released this and have no plans to do so at this time, but that’s why you saw the rumor about us doing a music player. Like many groups at Microsoft, we have ongoing conversations with the Xbox music team about their experiences, and as you probably know they just launched a new web Xbox music web experience which we think is pretty awesome (http://www.xbox.com/en-US/music).