VLC does support streaming subtitles when they are included in the playlist over ftp and http. Would it be possible to include the VLC playlist in a future release and that it reads the subtitles and includes them if available in txt, srt and sub formats?
don't know if there is a way to get the player to read subtitles from mkv video files or not but that would be awesome. right now they just get stripped out of the video files when its played in jwplayer