Choppy video when loading another instance of VLC

[Lightlabyrinth]

I'm in a situation where I'm cycling through VLC windows on multiple monitors. Each monitor has a window in the background which connects to a network stream and then brings itself to the front, the hidden window then does the same. This is all set up so that only one monitor switches at a time, every 5 seconds a different monitor changes video.

I am seeing a slight chug when a video window switches while 6 are running, it lasts maybe half a second and only happens maybe one out of 3 times. It gets worse when I try this on 4 monitors(8 VLC instances), the video quality is abysmal on every monitor during each switch making this completely unusable.

I have monitored the GPU performance, CPU, RAM, and network activity. The CPU occasionally goes above 50% but never peaks, GPU remains rock solid at around 30% usage. I have tried this on multiple machines running Windows 7, all exhibit the exact same behavior.

What type of bottleneck could I be looking at here? Is there some sort of shared resource that VLC uses that could be causing this stutter?