Sure, but the difference is that VLC can’t execute code, and if you change the file extension to MP4 then a media player is going to try to open it.
So yeah it could contain a virus, but I think getting hit with that code is almost completely impossible.
rofl seriously? Not only will they charge for the installs, but they won’t even use the actual number of installs - they’ll guess? This is the most hilariously stupid business model I’ve ever heard of