We (the tech dept) did this in my high school. Our school got cable service, but rather than have a cable outlet in every room, we would stream some live shows via VLC to the rooms when they needed it. It was probably illegal in some form, but I really am not quite sure on that because if it were illegal my technology manager would not have initiated it. I think it all depends on the situation and type of contract. If you are streaming this to the web, probably illegal. Streaming to some other location within the same building, less likely to be illegal.