How to stream a video with VLC in a LAN

I wish to execute a video in my PC and stream it in the LAN so anybody can connect to it and watch it. What steps do I need to do to accomplish this in an easy manner.

Here is a command line to stream webcam:

vlc v4l2:// :v4l2-dev=/dev/video0 :v4l2-width=640 :v4l2-height=480 --sout="#transcode{vcodec=h264,vb=800,scale=1,acodec=mp4a,ab=128,channels=2,samplerate=44100}:rtp{sdp=rtsp://:8554/live.ts}" -I dummy

Go to Media > Stream and select appropriate tab (file, disk, network, capture device) > Stream

Then click Next and Check display locally (optional) and from the drop down box select http: and click add

Select desired port not in use and hit Next

Check activate transcoding and select desired output format (click tool icon next to dropdown box to configure bitrate and other specific settings) > Next > Stream.

If all is good, you should see your source displayed/playing locally.

To test the stream, go to another computer on your LAN and with VLC, go to media > open network stream and type http://serverIP:portnumber (replace serverIP and portnumber with actual values) and hit Play.

If all is good, your stream will connect and play quickly.