Open VLC:
Media -> Stream …
In File tab click Add…; select a video file (its better if its > 1 minute)
Click on Stream, in Source click Next
Select RTSP in “New destination” and click Add
In RTSP tab Path should be /stream.asx
In Transcoding Options, Profile select “Video –H.264 + MP# (MP4)”; click Next
Click Stream button
Open another VLC instance:
Media - > Open Network Stream…
Give in network URL: rtsp://:8554/stream.asx or rtsp://:8554/stream.asx
Click Play
On the second VLC instance you should be able to see the video with some delay / compression. This is similar to streaming from camera.