VLC, or VideoLAN, is a popular, cross-platform multimedia player that comes with an easy-to-use interface for streaming live video over the Internet. While the most common protocol to stream from is HTTP, it is possible to stream in RTSP using the same methods. RTSP can be advantageous if you want to stream over TCP and UDP, do not want to degrade the quality of your video for transport, or if you want to connect with a 3G compatible phone.
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Launch the VLC media player from your programs menu. Click "Media" and "Streaming," or press the CTRL+S key combination to launch the streaming dialog.
Click the "Add" button and find the movie you want to stream on your hard drive. Click "Stream" once you have selected your media.
Click "Next" to move to the Destinations section. Click the provided drop-down box and select "RTSP" from the options. Choose any additional options, like an alternate port or to transcode the video.
Click "Stream" to begin streaming the video over the network. Unless you checked the "Display locally" check-box under the Destinations section, you will not see any video on your desktop.