Wikipedia provides the following elaboration about webcams:

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.