Even if Vmedia were to fix all of their technical issues, it would still remain a crippled system. When consumers hear IPTV, they think video on demand streaming of all available programming without restrictions. That's where IPTV is headed eventually, it's just a matter of time. Many studios and most broadcasters won't allow that and place burdensome restrictions on services that want to provide such services.
Companies like Netflix and Amazon are producing their own content in order to get away from traditional broadcaster and studio restrictions. The current, traditional broadcasting system is what gave rise to Netflix and, as a side effect, illegal streaming services. It's similar to any situation caused by prohibition, supply restrictions or high taxation. If possible, a legal competitor will step in to fill demand. If the product isn't available legally for a reasonable price, a criminally run black market steps in to fulfill demand. As long as Vmedia must appease the CRTC and it's broadcaster created system of regulations, it will not succeed.