Playing local files with OSMF is possible, you need to append 'file://'
filepath = "file://" + File.applicationDirectory.nativePath + file;
The zoom issue is a bug (very annoying, not possible to play a seamless sequence of videos, see http://forums.adobe.com/message/4332059 )
add your vote here: https://bugbase.adobe.com/index.cfm?event=bug&id=3335182
Another gotcha/bug is that the autoplay feature on the OSMF mediaplayer class is not working (seems to be a NetStream issue?)
Listen for the LoaderEvent.LOAD_STATE_CHANGE event on the netloader instance, when event.newState == 'ready', start the player manually with a delay… any delay seem to work, e.g. setTimeout(_player.play, 25)
otherwise a MediaErrorEvent is dispatched w/ a Playback failed error.
To add a late answer for other people searching about:
On iOS you can only playback MP4 videos with stageVideo.
OSMF is broken, because it uses initially the classic VideoObject and has a delayed VideoDisplay creation which uses StageVideo.
To have a working playback you can only start the playback if the StageVideo-Object already exists and the netstream is attached to this stageVideo object, otherwise OMSF will get a internal "NetStream.Play.Failed" state.
Due the lazy creation of the OSMF DisplayList and the strict capsulated development of OSMF a autoplay and / or autoShowFirstFrame is with OSMF 2.0 not possible.
Or to say it in other words:
It was and is currently broken by design on iOS -.-
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