I noticed that the Android app is currently streaming video via the web browser.
I'd like to suggest looking into taking advantage of some of the activities available from other apps.
I recently downloaded Vplayer beta and noticed it has an activity that might work to pass a URL to stream the video from.
There are a couple advantages to this. One, the player has a good UI for playback. Two, it plays many formats and may make transcoding the video unnecessary.
