Streaming over-the-air TV in VLC, I noticed that some channels have heavy interlacing on the video with motion present. To resolve, I enabled deinterlacing with mode "Yadif" ("Yadif (2x)" consumed too much CPU). Yadif consumes about 60-75% CPU cycles.

1. Tools > Preferences > Video
2. Set Deinterlacing to "On" and Mode to "Yadif"

Example of how deinterlacing improves video quality:
https://en.wikipedia.org/wiki/Interlaced_video#/media/File:Deinterlaced_vs_interlaced_image.gif

Source: https://tvheadend.org/boards/5/topics/4097