Companies are constantly trying to reduce costs, better communicate and go global. This wonderful thing called the Internet has made this more possible now than ever before. Unfortunately, that doesn't mean it's done right. I found a white paper from Frost & Sullivan that clearly explains the correct ways to use web conferencing and webcasting.
Web conferencing is for smaller audiences, is less formal and limited in video function and quality. They're usually conducted over the web and through a phone line. Webcasting is for larger audiences with a lot of features, like surveys and polls, and allows for instant participation. They're usually more structured and broadcast live, similar to UStream.
Companies that offer online event services base their cost on the same premise as traditional in-person events. The cost depends on how many participants are included, the length of time needed, features ordered, etc. They are still cheaper than trying to get hundreds of people together from around the world for a convention.
Web Conferencing vs. Webcasting - Source: Frost & Sullivan
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