To transcode your local video to VLC and FTV more compatible video, you can try Pavtube Video Converter Ultimate (Get Mac version). So do you get interested? But there is a warm tip: although VLC can handle nearly all video formats, considering the video playback smooth, I suggest you to re-encode your local video to MP4 or H.264 MKV with video converter for VLC playing on FTV in that if your original local video is the one VLC needs to transcode, the process will take up your bandwidth and obstruct your video passthrough and streaming. Some feedback indeed unveiled that 'I got the update today on my non-rooted FTV, and I immediately installed a cheap 4 port non-powered USB hub with my Logitech K400r and a Patriot 32GB thumb drive. It seems that only if you stored your local video on USB drive, you can play it with your Amazon Fire TV with VLC. Apps like VLC and Kodi can play media stored on an attached external drive without any issues. But fortunately, Amazon is not going out of their way to block apps from accessing USB external storage. As for other uses of USB storage, Amazon explicitly states that you cannot access any media that you side-loaded onto the USB device. The latest Amazon Fire TV update has added official support for external USB storage, which is used for storing apps and games.

Install vlc on firestick