The VideoLAN Forums

Wondering if an Apple TV with the new VLC app will play a multicast UDP transport stream? I've never been able to do so in my work environment, because multicast isn't enabled or our wireless network. But an Apple TV on the wire could potentially replace a much more expensive set top box.

It is supported by the app, yes, but if it actually works depends on the capabilities of your WiFi router. Often, multicast UDP is also throttled or disabled on home routers.