Red October works very well in 90+% of cases now, I believe, and that might be an underestimate. I think there may be a way for JR to make some money from this effort, other than from sales of MC.
I'm thinking along the lines of separating Red October from the rest of MC and marketing a small, just-works directshow player, which will play all the formats that the kids are downloading from bittorrent, newsgroups etc. This is a HUGE market and shouldn't be underestimated.
MPC-HC does this for free, but in order to use LAV codecs or madVR there are things that one has to do that would put off a newb. After the free 15-day trial, RedOctoberPlayer has to be bought. For $20, the RedOctober Player would be an install once and forget piece of software, updating through update channels. You can choose between Standard and HQ settings with a single radio button.
Videos (or music) is played back simply by selecting in Windows Explorer and double-clicking, or adding to playing now via contextual menu. No libraries to worry about or display, but it could act as a DLNA renderer too.
For just an additional $20-$30 one could upgrade to the full MC, which organises your media, does DSPs, plug-ins and even edits photos.