Step 1: Download and install the app called “Video Live Wallpaper".
Step 2: After downloading and installing, its now time to set up a video as live wallpaper, simply long-press your device home screen to open the “Set home screen” dialog. Choose “Wallpapers” from the menu to Select “Live Wallpapers”.
Step 3: You Should now see list of live wallpapers. Scroll down and select the option for “Video Live Wallpaper”.
Step 4: Now Select your live wallpaper’s video source by going to its settings. Just tap the “Settings” option under the live wallpaper screen.
Step 5: On the settings page, go to Live Wallpaper Preferences > Video Source. If you want to select a video from your device, select the option for “File or directory”.
If you want to select a ready-made video from Video Live Wallpaper’s directory, select “Application provider”.
Step 6: Select the file or directory where you placed your videos. Your video formats must be 3GP or MP4.
After choosing your live wallpaper video source, you may also update its default preferences
Once you’re done, simply tap the back button. You will then see one of your videos as it continues to play on your screen. Just don’t forget to select “Set Wallpaper” to confirm your selection.
This app suspends its activity automatically when your phone is locked or when you are working on some application and thus consumes less battery as compared to a normal live wallpaper and Hence Consumes less Battery.