Django not recognizing the MEDIA_URL path?
It looks like your are using the debug server (your url is http://127.0.0.1:8000/...) . Did you install the static serve in your urls.py?
if settings.DEBUG: urlpatterns += patterns('', (r'^media/(?P<path>.*)$', 'django.views.static.serve', {'document_root': settings.MEDIA_ROOT, 'show_indexes':True}),)
The 'show_indexes':True options make possible to browse your media. Go to your medias root http://127.0.0.1:8000/media/ and see it there is something
You can either pass it to the template manually as others have suggested or ensure that you are using a RequestContext instead of plain Context. RequestContext will automatically populate the context with certain variables including MEDIA_URL and other media-related ones.
Example from docs:
def some_view(request): # ... return render_to_response('my_template.html', my_data_dictionary, context_instance=RequestContext(request))