The term virtual studio can refer to any number of technological tools which seek to simulate a physical television and/or movie studio. One such use of the term follows.

A virtual studio is a television studio that allows the real-time combination of people or other real objects and computer generated environments and objects in a seamless manner. For that integration we will use chromakey technology. A key point of a virtual studio is that the real camera can move in 3D space, while the image of the virtual camera is being rendered in real-time from the same perspective, therefore, this virtual scene has to adapt at any time to the camera settings (zoom, pan, angle, traveling, etc.). This is what differentiates a virtual studio from the traditional technique of chromakey. It also differs from techniques used in film, in which scenes are edited later. A virtual studio does not need any post production because it is in real-time.

There exist many technical solutions for creating virtual studios, but most of them include the following components:

Chroma key compositing, or chroma keying, is a special effects / post-production technique for compositing (layering) two images or video streams together, used heavily in many fields to remove a background from the subject of a photo or video - particularly the newscasting, motion picture and videogame industries. A color range in the top layer is made transparent, revealing another image behind. The chroma keying technique is commonly used in video production and post-production. This technique is also referred to as color keying, colour-separation overlay (CSO; primarily by the BBC), or by various terms for specific color-related variants such as green screen, and blue screen - chroma keying can be done with backgrounds of any color that are uniform and distinct, but green and blue backgrounds are more commonly used because they differ most distinctly in hue from most human skin colors and no part of the subject being filmed or photographed may duplicate a color used in the background. It is commonly used for weather forecast broadcasts, wherein the news presenter appears to be standing in front of a large map during live television newscasts, though in actuality it is a large blue or green background. When using a blue screen, different weather maps are added on the parts of the image where the color is blue. If the news presenter wears blue clothes, his clothes will also be replaced with the background video. A complementary system is used for green screens. Chroma keying is also used in the entertainment industry for special effects in movies and videogames. The advanced state of the technology and much commercially available computer software, such as Pinnacle Studio, Adobe Premiere, and dozens of other computer programs, makes it possible and relatively easy for the average home computer user to create videos using the "chromakey" function and easily affordable greenscreen or bluescreen kits.