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It will definately stream content, and in multiple formats.
From their site: VLC - the cross-platform media player and streaming server
VLC (initially VideoLAN Client) is a highly portable multimedia player for various audio and video formats (MPEG-1, MPEG-2, MPEG-4, DivX, mp3, ogg, ...) as well as DVDs, VCDs, and various streaming protocols. It can also be used as a server to stream in unicast or multicast in IPv4 or IPv6 on a high-bandwidth network.
If you want downloadable content then http: is fine. Just set up a direcory and put the files their. Most players will buffer the content and then start playing it.
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