VLC for Android plays most local video and audio files, as well as network streams (including adaptive streaming), DVD ISOs, like the desktop version of VLC.

All formats are supported, including MKV, MP4, AVI, MOV, Ogg, FLAC, TS, M2TS, Wv and AAC. All codecs are included with no separate downloads.

VLC for Android has a media library for audio and video files, and allows to browse folders directly.

VLC has support for multi-track audio and subtitles. It supports auto-rotation, aspect-ratio adjustments and gestures to control volume, brightness and seeking.

It also includes a widget for audio control, supports audio headsets control, cover art and a complete audio media library.

What's New
VLC on Android 2.0.6
2.0.6 is an update fixing crashes, updating codecs and saving the audio delay for BT headphones.
2.0 introduces a large number of features, notably network disk browsing (Windows shares, UPnP, NFS, SFTP...), favorite folders and URLs, video playlists, popup video, new permissions support, subtitles download, rewritten notifications and control, and a new history.
The Android TV and Android versions were merged, so that every device can get the updated Android TV look.
 

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A quality open-source media player