Originally Posted by **********

It's still illegal. "Federal Law provides sever civil and criminal penalties for the unauthorized reproduction, distribution, or exhibition of copyrighted music or motion pictures".

A chat host playing a video or music in the background, if seen or heard by the end users, could very easily be violating this law. And regardless of any argument to the contrary, the website, service provider, hosting company or billing company would be right to want to shut the stream down simply to avoid the legal costs of fighting this.