I was testing some audio stuff fairly recently, MOD players and such. In one case I tried to integrate the logic itself into the engine: detecting the file format, then do decode + playback. But I also decoded into PCM in a memory buffer and then played from that. The latter approach was using some play-from-memory code in Solar’s audio library; nothing had actually been calling it, so up to that point I was never even sure it would work.
I was able to do those things because I was hacking on Solar itself, but it would
want a little sprucing up and be exposed through plugins, ideally. (There’s another possibility I have in mind, too, but not yet implemented.) This has been done for graphics, or rather textures—the memory bitmap plugin is built on it, for example—so I figure we’d want something similar.
Anyhow, if one could stream into a memory buffer, in theory we’re good to go. That said, there are a LOT of weird quirks in the mixer code, like this rewinding thing, so I’m not sure there wouldn’t be snags. Also, there would be some practical considerations, like what should happen if there’s lag and you don’t supply the next chunk.
SoLoud can play from a memory buffer, but I haven’t tried to implement any kind of networked streaming example.