Contabo VPS M (6 core) runs both the Playtube script and the the Livestream plugin just fine.
I do notice that at every so often the actual Playtube script will not entirely process a video fully. I think it may have to do with resources of a VPS being limited / ffmpeg. Again this is a Playtube thing, not an issue with the Livestream plugin.
A VDS may fix that issue.