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Online real-time video streaming on intranet

We are a group of 7 students working in a software engineering project. The project is of Virtual Classroom in which the professor will take online lectures and the students would be able to take the lecture in real time through video rendering.
We have planned to develop the project as a web application though we will run only on the intranet. So the bandwidth is probably not an issue.
My question is what are the different ways in which i can render the real time video and audio streaming effectively? Do any APIs exist for this? Are there any free facilities to render real-time video streaming?
We plan to code in php.
I am aware that for desktop-like application i can use encoders like windows media encoder (for windows only though). But i am not aware of any such thing for a browser-based application.

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