I'm always throwing music videos in the background of my scenes. Here's how I do it.
1. Convert your video to webm using Adobe Media Encoder or DVDFab. If the file's under 1GB, you can convert it for free at
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2. Create an HTML file to reference the video file. This way you can make it loop and autoplay. Both are set in my attached example file. Open the html file in notepad (or your preferred editor) and set the src to your video. Also, if you don't want the loop or autoplay, just remove those words inside the video tag.
3. Create a webpanel in your scene and set the Web URL to your HTML file using the local directory URL format: file:///C:/VaM/Custom/Sounds/Music/video.html
Easy peasy!