This is a pretty simple tweak using which you can set any video as your desktop wallpaper.

Just follow the steps given below:

1. Download VLC Media Player and install it.

2. Run VLC media player, go to Settings->preferences->Interface->General, then click on wxWindows. Remove the tick on "Taskbar" and put a tick on "Systray icon".

3. Now go to Video->Output Modules->DirectX. On the bottom right put a tick on advanced options check box. You will now see some options. Put a tick on "Enable Wallpaper Mode".

4. Now, select playlist, then click General and put a check or tick on "Repeat current item".

5. Press the Save button. Now close the vlc player and run it again (to save the settings permanently).

6. Now play any video you would like to set as Wallpaper. Right click on the video and click on "Wallpaper".
The video would be set as your wallpaper!!!