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The decentralized business model of camming has upended the pornography industry in multiple ways.

Camming revenue has been severely cutting into the profits of the pornographic movie business, which has also been eroded for a number of years due to piracy and the distribution of free sexual content upon the Internet.

A third-party hosting website which transmits multiple webcam models' video-streams is known as a camming site.

Webcam models mostly perform individually in separate video chat rooms, which are frequently referred to as rooms.

In 1996 an American college student and conceptual artist, Jenny Ringley, created a website called "Jenni Cam." Her web camera was located in her dorm room and automatically photographed her every few minutes.

The camera captured Ringley doing almost everything – brushing her teeth, doing her laundry, doing stripteases – and then she broadcast it live over the Internet.

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Tips are electronic tokens that viewers can buy from a camming website, and then give to the models during live performances.

Camgirls will frequently read and respond to the scrolling viewer comments.

However this is not the first time that conversational interaction had become a boon for the erotic entertainment industry.

And in the early 20th century sociologist Paul Cressey noted that within the hundreds of taxi-dance halls of America, "the traffic in romance and in feminine society" would become available when taxi dancers would offer their companionship and "the illusion of romance" for ten cents a dance.

Much of the success of camming owes to its ability to move beyond the borders of erotic video performance, and into the everyday social lives of camming customers, or fans as they are known.

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