VLC for Android needs access to : • "Device & app History" to be able to read logs, to help understand crashes and issues, so we can improve VLC. • "Photos/Media/Files" to read your all media files :) • "Device ID & call information" in order to pause music/vid...
Typically Android devices tend to be too weak to be able to encode/transcode on the fly, but it might be possible with some work (and really powerful hardware).