This is your best option. I did do movie nights with friends during the pandemic in a similar way, but I used OBS Studio to create the stream and Monaserver to stream it to all users. I did not know VLC can handle the streaming to users directly, making this dead simple to setup without additional software. You just need to know how to configure your router to allow the needed port forwarding.
That is not entirely correct. The reported found the app using permissions that are not covered by the manifest. It also found the app being capable to execute arbitrary code send by temu. So it cannot be clearly answered if the app can utilize these permissions or not. Obviously they would not ship such an exploit with the app directly.