You must use vlc mjpg output module
this cmd line works for me:
vlc.exe --sout="#transcode{acodec=none,vcodec=mjpg,vb=512}:duplicate{dst=std{access=http{mime=multipart/x-mixed-replace;boundary=--7b3cc56e5f51db803f790dad720ed50a},mux=mpjpeg,dst=0.0.0.0:8080/image.jpg},dst=display}" movie.avi
then on any web page (works in Chrome / Firefox)
<img src="http://127.0.0.1:8080/image.jpg" width="320" height="240"/>
or directly using vlc http://127.0.0.1:8080/image.jpg
hope this helps.
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