Media chat is a new kind of chat room that allows viewers to watch the same media simultaneously while chatting. Think of it like hanging out with friends and watching tv together. Heres a screen shot:

Update: We have replaced the functionality of the Media chatroom inside users chatrooms with our Video Mixer:

The Video Mixer is a new feature for host chatrooms. It allows you to broadcast any videos uploaded to your stickam account or added to your playlist in your chatroom for all viewers to see. You can now be your own VJ or watch your favorite video simultaneously with all your friends in your stickam chatroom.

You'll notice the new Mixer button added to the host chat control bar.

Clicking on brings up the Video Mixer window.

From here you can see any videos added to your Stickam playlist in the Video Mixer pulldown.

After choosing a video, click the Broadcast button to play back the video to all users watching your Stickam player. The video will continuously loop. You can jump to another video by selecting another from the pulldown list.

To change back to your webcam, click the Broadcast button again.

If you want your mic to be heard over the video, click the Voiceover check box before clicking the Broadcast Button. Real time directors commentary anyone?