With silverlight 4.0, it is possible to show a live video of the user on the screen: Here is the code

    VideoBrush videoBrush = new VideoBrush(); 
    CaptureSource captureSource = new CaptureSource
                                      {
                                          VideoCaptureDevice =
                                              CaptureDeviceConfiguration.GetAvailableVideoCaptureDevices().First()
                                      };
    bool b = CaptureDeviceConfiguration.RequestDeviceAccess();

    videoBrush.SetSource(captureSource);
    captureSource.Start();
    myrect.Fill = videoBrush;

However, I am looking at a way to show the video to someone else - seeing oneself on screen is not that interesting.

Is it possible?

Do I need my own server? Can I use clowd services to do the communication?

Are there performance issues?