Rémi Denis-Courmont, one of the primary developers of VLC, explained to MacStories that Apples iTunes Terms and Conditions don't allow users to install both free and paid apps on more than 5 devices. This goes against the original GNU license VLC's code is based on.
"In any case, while the rules for distribution of open-source or "free" (as in speech) software are extremely relaxed, they do exist and have to be abode by. VLC and open-source software in general would not have reached their current quality and success if it had not been for their license. Therefore, blatant license violation cannot be tolerated at any rate. Concerned users are advised to look for application on more open mobile platforms for the time being."
You can download VLC Media Player from the App Store for free.
Read More [via MacStories]