When I get asked this question, it’s usually by young bands who have developed something of a following through touring, by being really active with their online promotion (typically via MySpace) and by keeping and maintaining a healthy and regular online mailing list.
Their idea is that they would like to perform concerts that fans in other geographic locations could ‘attend’ by going to their website and watching a live webcast of the event. Their second choice is usually to record the concert and post it on YouTube (or similar) and embed it on their site.
Now, it has to be said that live streaming is generally expensive, resource intensive and a bit of a pain – especially if you want more than a few people to watch at once. There are solutions to that, which I’ll discuss – but it’s worth mentioning that there are all sorts of other variations on the theme.