Sofox, I think what you mean is slightly different, it converts the video frame-by-frame. I think it’s an extension to M-Player(?) in Linux, it means you can watch video in the console ;)
Yeah, that’s what I meant, there’s a program that converts a video frame by frame into ascii.
However, someone told me once of a similar program that instead of converting video frames, it converts video game frames on the fly, allowing you to play Quake with ascii graphics. (at least that’s what I heard).