The the beauty about this app is that it plays all of the file types supported by its desktop counterpart, including .mkv and .avi, as well as network streams, and includes Dropbox integration, support for subtitles, and variable playback speed.
While speaking to MacStories, VideoLAN project’s developers explain that the app will work on any device running iOS 5.1 and third-party apps can’t use hardware acceleration for video playback without using Apple’s own frameworks, so your mileage may vary depending on the encoding profile used. The whole project is open source (much of it rewritten to be compliant with Mozilla and GNU licenses), and you can download verything to take a look at how it works inside Xcode if you’re adventurous. As usual it looks like the app isn’t available yet in all markets, but it is free to download.
Source: MacStories
