You can't avoid launching the player interface if you want to use the built-in player.
Here's what I would try:
- get the new window that is created by MPMoviePlayerController (see here)
- explore the view hierarchy in that window, using [window subviews] and [view subviews]
- try to figure out which one of those views is the actual player view
- try to insert a view BEHIND the player view (sendSubviewToBack)
- find out if the player supports transparency or not.
I don't think you can do much better than this without writing your own player, and I have no idea if this method would work or not.
Depending on the size of your videos and what you're trying to do, you could also try messing around with animated GIFs.