Assuming the following:
It should be possible, except in IE8 and below, which does not support Audio/Video elements. Note that Opera does limit the size of the URI.
These are my test results. I'll try with Ogg as well if prompted.
Legend
Test results
IE9 supports this, but only for file formats it supports. For instance, it works for MP3 files but it will not work for WAV files. Tried http://www.themaninblue.com/experiment/JS-909/ and the following test:
<!DOCTYPE html>
<html>
<head>
</head>
<body>
<audio controls="controls" autobuffer="autobuffer" autoplay="autoplay">
<source src="data:audio/wav;base64,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" />
</audio>
</body>
</html>
For what it's worth, I was able to get a large (14mb) mp4 uuencoded and playing as a data uri in OSX Safari, but not Chrome. Still have more testing to do with smaller chunks, once I find some.
Also worth checking out the HTML5 MediaSource API. It's not widely supported yet, but allows for appending arbitrary bytes for media playback.
http://html5-demos.appspot.com/static/media-source.html
That's probably because IE9 doesn't support WAV format in its audio element. Only MP3 is supported by now. I really hope that they change that in the RTM version.