Videochat studios are companies that produce websites and WAP sites that contain links to chat models. These companies offer users the ability to connect to a models webcam and watch as the chat model performs erotic acts for them, usually on a pay per view basis. The client’s own webcam can also be utilised so that the video chat model can see them while performing their private show.
Customers can pay anywhere between $0.99 or $40.00 per view to watch models perform naked shows and are often enticed into private chats by first being allowed a free view of the model’s online webcam video.
Adult videochat websites (or webcam chat websites as they are otherwise known) provide live webcam shows in two main categories, group shows and one to one shows using video streaming technology. These websites often cater for users preferences by providing content in genres such as girls, gay cams, fetish, lesbians and couples, Transgendered among others.
The videochat companies often set up studios where the models can perform with either small rooms or booths with a video camera or webcam, a computer and a microphone where they can perform their shows with at least some level of privacy or they provide a connection to their websites for models who wish to work from home. Many models prefer to be employed and work from a studio. One of the main reasons for this is that they can work in private away from any family members.
Some videochat studios employ models to work in their own premises have separate websites where potential models can apply to become a videochat model. The most reputable studios will explain every detail of the working conditions, the legality and what each model can expect it terms of profits. Models are asked to enter their personal details and submit evidence of their age, usually by uploading a photograph of themselves and their driving license or other government approved identification.
Other videochat studios are simply looking for models who wish to work from home. The positions offered by these studios are very similar in terms of the information that they require from applicants but they are also required to give details of their broadband connection, computer hardware and the quality of their webcam.
A huge number of models that do work from home as a videochat model come from poorer countries such as Russia, Hungary, Romania, Ukraine and the Philippines where the average weekly wage is low and is viewed as a better alternative to entering the full blown sex industry which blooms in these countries.
The videochat market is slowly but surely moving mobile. This is opening the way for videochat companies to capture a new area of the adult market. The advent of more sophisticated 3G mobile handsets such as Apple’s iPhone and the new Android based cellphones means that phone to cam technology is now possible. On 24th of June 2010, the Iphone 4 which features a front facing camera was released, which gives users the ability to use the handset for videochat calls. An Android video chat phone has still to be released. The chat app exists but the  Vphone(or V1) handset will not be showing off its video chat ability until the operating system is upgraded from 1.6 to 2.0.
Video chat is becoming increasingly more popular and companies are becoming ever more aware of this fact. Google recently added a free voice and video chat feature to  Gmail which gives subscribers the ability to speak to friends on a video screen and simultaneously instant message them in a Google chat box.
Mobile videochat websites mean that the user doesn’t need to be in front of a computer to participate, and as privacy when viewing is obviously a concern to most consumers of adult material, the ability to watch live videochat from almost anywhere is a boon.
The mobile web market is growing at an expeditious rate and is set to increase exponentially making the way we communicate and collect data more efficient than was ever previously thought possible.
The global revenues from adult videochat services are expected to increase dramatically over the next five years or so, reaching at least $1.5bn by 2012.
While the take-up levels of these mobile adult services are relatively low, the typical monthly spend in this unique market is generally ten to twenty times greater than other adult related services.
Videochat studios already set out are showing extraordinary degrees of customer retention and usage, with the customers returning on a regular basis to video chat with the same model and cultivating a relationship with him or her.
With 3G use expecting to go beyond 35% in many existing markets by the end of 2010, there is a serious opportunity for companies to produce and monetise live videochat sites. Adult videochat is set to make up about 33% of all mobile adult service profits by 2012.
Europe will continue to have the largest share of the mobile adult services market with profits increasing from $128m in 2010 to $453m by the year 2012.
Another form of adult cam chat has arisen  such as http://www.paltalk.com. This is a popular free chat destination of many Vietnamese. There are dozens of chatrooms where Vietnamese people meet. Although this is not an adult videochat website as such, There are girls who exchange nude web cam shows for phone cards. “Gaihot” (sexy girl) post invitations to chatroom members to join them for nude chat. One reporter who visited this website for research purposes chatted to one of these girls who told him that if he sent her a 50k (50,000 Vietnamese đồng) card she would do a striptease, and that she would show him everything if he sent her a 100k card.
There are no international laws governing adult video chat and each individual country views this differently. In general, if the images are legal in the country from where they are being provided, then the provider is not in violation of any laws, even if the content can be accessed in other countries where the content is indeed illegal.