Rotate changes image but not layout

When rotating a video, the image itself is changed, but the aspect ratio does not. For example, I shot a video with my phone in portrait positing. When copied to my PC and viewed in a media player, the video was "sideways". In VLC version 2.0.1, the rotate function on the geometry tab worked like a charm. However in version 2.0.4, the image itself was rotated, but the viewing area remained landscape, resulting in the video proportions appearing too short vertically and stretched horizontally.