Media player for Drupal 7 that can play remote http-accessible files
If this were me; I'd be using a media-compatible media player (such as MediaElement with the 2.x branch of Media) and using remote stream wrapper to allow me to place the remote URL into the media field: https://drupal.org/project/remote_stream_wrapper

This should let you use local media or remote media that the media player can play, and will keep things tidy for you to manage.

/Robin