Set your Video as wallpaper.

1st Step:
Open VLC Media Player.

2nd Step:
Go to Tools > Preference and press CTRL + P.

3rd Step:
Choose DirectX video output from output list

4th Step:
 Save the changes and restart VLC Media Player.

5th Step:
Play video you like to set on your desktop wallpaper.

6th StepL:
click on Video and select DirectX Wallpaper from the list.

7th Step:
Minimize vlc player and you see your video running on your desktop like as wallpaper.