You can set a video as wallpaper on most Android devices by using one of several free apps, depending on the device you own.

Use Lively Wallpaper to set any YouTube video as a Windows wallpaper Lively Wallpaper is an app created by rocksdanister.

If you're looking to make your desktop background more dynamic, you should try embedding a video with the open source app Lively Wallpaper.

Display system information, boot time, processor, memory, processes, threads, operating system & hardware details on your desktop using Awesome Wallpaper.

Instead of default, switch it to DirectX video output. After restarting VLC, you'll notice that under Video in the toolbar, the "DirectX Wallpaper" option is now clickable.