vStream TV Review: Legit media streaming for $349?
There is no information on the vStream TV website indicating who owns or runs the business.
The vStream TV website domain (“vstreamtv.com”) was registered on the 27th of January 2015 and lists a David Bremner as the owner. An address in the US state of Virginia is also provided.
Based on the Nutronix domain email address used to register the vStream TV domain, David Bremner would appear to be a relative of Bob Bremner (right).
Bob Bremner is the Founder of both Nutronix and The Legends Network.
Why this information isn’t provided on the vStreamTV website is a mystery.
Read on for a full review of the vStream TV MLM business opportunity.
The vStream TV Product Line
vStream TV market a $349 Android based streaming box.
As per the vStream TV website:
VStream TV’s Streaming Media Players seamlessly combines live TV and the best in streaming entertainment – bringing more hit shows, movies, music and more to your TV.
The technical specs provided for the vStream TV box are as follows:
Android 4.4 KitKat supports a Google browser, Flash10.2 and HTML5. The all new aluminum housing is low-noise for cooling.
AmLogic S805 Quad Core ARM Cortex A5 1.5 GHz CPU + Quad Core Mali 450 GPU
DDR3 1 GB and 8 GB NAND Flash storage
One question that popped up in my head was who is providing the licensing rights for the content streamed through the box?
This information is unfortunately not provided on the vStream TV website.
The vStream TV box is simply advertised for a one-time cost of $349, with the box itself providing access to a continuously updated library of streamable media content.
The vStream TV Compensation Plan
A copy of the vStream TV compensation plan is provided on the company’s website, however further research reveals this to only be a partial copy of the plan.
As such I’ve had to combine information from vStream TV affiliate presentations as well as the official compensation plan documentation provided by the company.
vStream TV Affiliate Ranks
There are twelve affiliate ranks within the vStream TV compensation plan.
Along with their respective qualification criteria, they are as follows:
- Junior Executive – generate 100 PV in sales volume and have a downline that has generated at least 100 GV
- Executive – have a downline that has generated at least 1500 GV
- Senior Executive – have a downline that has generated at least 2500 GV
- Regional – have a downline that has generated at least 5000 GV
- National – have a downline that has generated at least 10,000 GV
- International – have a downline that has generated at least 20,000 GV
- 1 Star – have a downline that has generated at least 50,000 GV
- 2 Star – have a downline that has generated at least 100,000 GV
- 3 Star – have a downline that has generated at least 200,000 GV
- 3 Star Ruby – have a downline that has generated at least 300,000 GV
- 3 Star Emerald – have a downline that has generated at least 600,000 GV
- 3 Star Diamond – have a downline that has generated at least 1,200,000 GV
Note that PV stands for “Personal Volume” and is sales volume generated by an affiliate. This includes their own purchases.
GV stands for “Group Volume” and is the sales volume generated by an affiliate’s downline (including their own purchases).
Retail Commissions in vStream TV are paid out via a unilevel style compensation structure, based on the retail sales activity of recruited affiliates in a downline.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
In turn, if any of these level 1 affiliates go on to recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates go on to recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Commissions are paid as a percentage of the retail sales activity taking place within a vStream TV affiliate’s unilevel team, with commissions paid out as follows:
- Junior Executive – 30% on level 1 and 5% on levels 2 and 3
- Executive – 30% on level 1 and 5% on levels 2 to 4
- Senior Executive – 30% on level 1 and 5% on levels 2 to 5
- Regional – 30% on level 1, 8% on level 2 and 5% on levels 3 to 5
- National – 30% on level 1, 8% on levels 2 and 3 and 5% on levels 4 and 5
- International – 30% on level 1, 8% on levels 2 to 4 and 5% on level 5
- 1 Star – 30% on level 1 and 8% on levels 2 to 5
- 2 Star – 30% on level 1, 8% on level 2 to 5 and 3% on level 6
- 3 Star and above – 30% on level 1, 8% on levels 2 to 5 and 3% on levels 6 and 7
Note that 2 Star or higher ranked affiliates earn an additional 2% bonus on retail sales volume generated through one generation of 2 Star affiliates.
For the purpose of qualification, each unilevel leg is treated individually (the bonus is paid until a 2 Star or higher ranked affiliate is found in that particular unilevel leg).
Fast Start Bonus
The Fast Start Bonus pays out a commission on product purchase made by recruited affiliates within their first 56 days with the company.
The Fast Start Bonus is paid using the same unilevel compensation structure as outlined above in the “retail commissions” section of this review.
Residual commission in vStream TV are provided via a similar unilevel style compensation structure as used in retail commissions and the Fast Start Bonus.
Residual unilevel commissions are paid out as a percentage of the sales volume generated by a vStream TV affiliate in a unilevel team. This excludes their retail sales volume, only counting their own purchases and that of their recruited downlines.
How much of a commission is paid out depends on an affiliate’s own rank and what level of their unilevel team the affiliate generating the sales volume is placed:
- Junior Executive – 10% on level 1 and 5% on levels 2 and 3
- Executive – 10% on level 1 and 5% on level 2 to 4
- Senior Executive – 10% on level 1 and 5% on levels 2 to 5
- Regional – 10% on level 1, 5% on level 2, 8% on level 3 and 5% on levels 4 to 6
- National – 10% on level 1, 5% on level 2, 8% on levels 3 and 4 and 5% on levels 5 and 6
- International – 10% on level 1, 5% on level 2, 8% on levels 3 to 5 and 5% on level 6
- 1 Star – 10% on level 1, 5% on level 2, 8% on levels 3 to 5, 5% on level 6 and 7% on level 7
- 2 Star – 10% on level 1, 5% on level 2, 8% on levels 3 to 5, 5% on level 6 and 7% on levels 7 and 8
- 3 Star to 3 Star Emerald – 10% on level 1, 5% on level 2, 8% on levels 3 to 5, 5% on level 6 and 7% on levels 7 to 9
- 3 Star Diamond – 10% on level 1, 5% on level 2, 8% on levels 3 to 5, 5% on level 6 and 7% on levels 7 and 8 and 8% on level 9
Pro Member vStream TV affiliates are charged a $49.95 a month fee.
This fee is used to pay monthly commissions via a 2×15 matrix compensation structure.
A 2×15 matrix structure places an affiliate at the top of a matrix, with two positions directly under them:
These initial two positions make up level 1 of the matrix, with each branching out into an additional two legs each to make up the second level of the matrix.
These second level positions again branch out into two positions each to make up the third level, and so on and so forth down a total of fifteen levels.
Exact commission details through the matrix are sketchy, however it appears vStream TV affiliates are paid $5 per position filled starting from the third level of the matrix.
Additionally a 100% Check Match bonus offered on the matrix income of personally recruited affiliates.
One affiliate presentation also mentions a $2.25 Infinity Bonus offered on affiliates placed beyond the first fifteen levels of the matrix, however no further details are provided.
Note that in order to qualify for matrix commissions, in addition to paying $49.95 a month, vStream TV affiliates must also personally recruit at least two affiliates.
Billed as Rank Advancement Bonus, vStream TV pay out the following bonuses based on how many recruits are in an affiliate’s downline:
- Regional – 75 affiliates in a downline pays out $150
- National – 150 affiliates in a downline pays out $300
- International – 300 affiliates in a downline pays out $600
- 1 Star – 500 affiliates in a downline pays out $1000
- 2 Star – 1000 affiliates in a downline pays out $2000
- 3 Star – 2000 affiliates in a downline pays out $4000
- 3 Star Ruby – 5000 affiliates in a downline pays out $10,000
- 3 Star Emerald – 25,000 affiliates in a downline pays out $50,000
- 3 Star Diamond – 100,000 affiliates in a downline pays out $100,000
I believe the way these bonuses work is that the downline quota must be reached at the applicable affiliate rank (no recruitment requirements exist for vStream TV affiliate rank promotion).
Note that affiliates in a downline can be personally recruited or recruited by an affiliate’s up and downline.
Joining vStream TV
Basic affiliate membership with vStream TV is free, however the company also offers an unadvertised “Pro Member” option.
Pro Membership costs $49.95 a month and offers affiliates “discounts of up to $180 per vStream box” purchased, access to a “Discount Savings Club” and various marketing tools.
At the time of publication, the Pro Member option is not mentioned on the vStream TV website, nor does it appear in the company’s official compensation plan material.
To evaluate the retail viability of vStream TV’s box, I was originally going to go searching for a product comparison.
By the time I finished going over their compensation plan however, I soon realized that the company pretty much destroys retail viability itself.
Who on Earth is going to pay $349 when you can pay $49.95 and get a discount of “up to $180” per box ordered?
I will note that the discount appears to be based on how many boxes are ordered, but still… if you can pay $49.95 a month, sell a few boxes on eBay and come out cheaper than $349 for your own box purchase, why would you pay $349 retail?
Anyway, just incase there’s something I’m missing – how does vStream TV’s box stack up against the competition?
The product description of vStream TV’s box appears verbatim on an Amazon product listing for a “StreamSmart S4 Quad Core TV Box”.
Four appear on Amazon, three listed at $349 and one at $348. All have the same $4.49 shipping rate.
The same product has recently appeared on eBay, selling for the same $349. I’m guessing that these are vStream TV affiliates trying to sell units they purchased with their Pro Member discount at full retail.
How long’s that going to last if enough people sign up as vStream TV affiliates and catch on?
StreamSmart themselves have a website over at “streamsmartdirect.com”.
Noticeably absent are details on how to purchase the company’s product(s). And as for legalities such as broadcast rights and licensing?
StreamSmart is a smart TV box that streams in HD with no monthly fees or contracts. The StreamSmart receiver will give you access to movies, TV shows, live sports, PPV events, live streams of network channels, and 3d movies all in HD!!!
The movie selection is nearly unlimited. Whether you’re looking for a classic like Gone with the Wind or movies that are still in the theaters, they will be there.
Do you currently use a streaming service like Hulu, Netflix, or Amazon Prime? Imagine not having to wait to get the programming you want.
Streaming companies have to pay expensive distribution rights which are constantly passed on to the customer. At StreamSmart, all of the content is available immediately, if not in “real time”, meaning live.
Tired of paying a premium for PPV events like UFC, Boxing, or WWE? Stream them all LIVE in HIGH DEFINITION with StreamSmart!!!
Cancel your NFL Ticket, Red Zone Channel, NDA League PAss, and NHL Center Ice. With StreamSmart, they are all F-R-E-E and in HD!!!
Uh, if I didn’t know any better, I’d suggest that all that’s happening here is the streaming of illegal torrents via a database StreamSmart themselves maintain.
Either that or there’s some dubious cloud-based “restreaming” of existing legal stream services going on here.
In any event, on the legitimacy front what StreamSmart present on their website isn’t very convincing.
Not helping is the fact that there’s zero information about the StreamSmart company on their website, and the company’s website domain registration is set to private (registered only recently on December 10th, 2014).
Like it or not, distribution rights cover everything you see in the cinemas and on TV – somebody has to pay for those rights or you’re not watching a legal copy of the media in question.
Please note that “rage against the machine” type comments attempting to argue for or against current media distribution systems will be marked as spam.
The issue is whether or not what StreamSmart and vStream TV are offering is legit, not whether you agree or disagree with current media distribution models.
Moving onto vStream TV’s compensation plan, the free membership appears to be a gimmick – with vStream TV presentations noting that paid affiliates can earn an “additional 30%” on the sales volume of their downline.
The idea seems to be to get everyone to pay $49.95 a month, which they make back through the matrix via the recruitment of new affiliates.
The matrix component of vStream TV’s compensation plan by itself is a chain-recruitment model.
Affiliates buy in for $49.95 a month and are then paid to recruit new affiliates who do the same. Through the matrix no retail activity takes place, with all revenue and commissions paid out sourced from monthly fees charged to affiliates.
Even if you ignore every other aspect of the vStream TV opportunity, this alone drags the entire business opportunity over into pyramid scheme territory.
Pending some major transparency efforts on vStream TV’s behalf, starting with company structure, management and answering the question of legality regarding the StreamSmart boxes they are reselling, I can’t see anyone taking the company too seriously.
Approach with caution.