Wallicia is an application that allows playing videos on your desktop under the icons.
Wallicia also has a "buddy mode" so you can have your favourite video play wherever you like. Wallicia control panel can be closed and will stay nicely in your tray so you can re-open it or close the whole application. If you video has a black background it will be transparent, allowing for possibilities such as having your favourite character dance on the screen. Currently broken for videos with true alpha channel.
Wallicia Buddy Mode, featuring Hat Kid from A Hat In Time
Wallicia Desktop Mode, also featuring Hat Kid from A Hat In Time
Wallicia is powered by Singularity Engine, which unfortunately is still closed-source due to being heavily Work-In-Progress project. You may still offer suggestions and improvements for Wallicia.