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Webcam can be added to instant messaging, text chat services such as AOL Instant Messenger, and Vo IP services such as Skype, one-to-one live video communication over the Internet has now reached millions of mainstream PC users worldwide.

Unlike an IP camera (which connects using Ethernet or Wi-Fi), a webcam is generally connected by a USB cable, or similar cable, or built into computer hardware, such as laptops.

The term "webcam" (a clipped compound) may also be used in its original sense of a video camera connected to the Web continuously for an indefinite time, rather than for a particular session, generally supplying a view for anyone who visits its web page over the Internet.

Video calling support has also been added to several popular instant messaging programs. Software is available to allow PC-connected cameras to watch for movement and sound, a computer e-mailed images of the burglar during the theft of the computer, enabling the owner to give police a clear picture of the burglar's face even after the computer had been stolen.

Unauthorized access of webcams can present significant privacy issues (see "Privacy" section below).

One such function has the webcam act as a "magic mirror" to allow an online shopper to view a virtual item on themselves.

The Webcam Social Shopper is one example of software that utilizes the webcam in this manner.

Free Track is a free webcam motion-tracking application for Microsoft Windows that can track a special head-mounted model in up to six degrees of freedom and output data to mouse, keyboard, joystick and Free Track-supported games.

By removing the IR filter of the webcam, IR LEDs can be used, which has the advantage of being invisible to the naked eye, removing a distraction from the user.

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