I naively thought free projects were as resistant as VLC when it comes to manipulation for the sake of money, but big and even often cheered ones gave in.
A bad business model can be worse than having none.
Out of curiosity, have you considered monetization strategies like an open pay-per-video store? VLC is awesome, and I kind of wish it got the monetary compensation it deserves hah. I've heard that indie movie distribution is a dreadful space.
Certainly no expert in the field here, but maybe a store/market built around vimeo's "on demand" stuff? A partnership with vimeo whereby VLC would get a % of sales when purchased via VLC might help both parties (more exposure to vimeo via VLC, revenue for VLC, etc).
"When you buy a VOD, you will be able to stream its videos for as long as they remain on Vimeo. If the seller allows, you will also be able to download the videos to your computer and devices, DRM-free."
