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After months of searching the internet, this is what I came up with, I have neatly packaged it into classes, with unit tests and documentation as SmoothStream check it out, it was the only simple and working version of streaming I could find anywhere.

I used this code and wrapped mine around it.

Viewer.py

import cv2
import zmq
import base64
import numpy as np

context = zmq.Context()
footage_socket = context.socket(zmq.SUB)
footage_socket.bind('tcp://*:5555')
footage_socket.setsockopt_string(zmq.SUBSCRIBE, np.unicode(''))

while True:
    try:
        frame = footage_socket.recv_string()
        img = base64.b64decode(frame)
        npimg = np.fromstring(img, dtype=np.uint8)
        source = cv2.imdecode(npimg, 1)
        cv2.imshow("Stream", source)
        cv2.waitKey(1)

    except KeyboardInterrupt:
        cv2.destroyAllWindows()
        break

Streamer.py

import base64
import cv2
import zmq

context = zmq.Context()
footage_socket = context.socket(zmq.PUB)
footage_socket.connect('tcp://localhost:5555')

camera = cv2.VideoCapture(0)  # init the camera

while True:
    try:
        grabbed, frame = camera.read()  # grab the current frame
        frame = cv2.resize(frame, (640, 480))  # resize the frame
        encoded, buffer = cv2.imencode('.jpg', frame)
        jpg_as_text = base64.b64encode(buffer)
        footage_socket.send(jpg_as_text)

    except KeyboardInterrupt:
        camera.release()
        cv2.destroyAllWindows()
        break