1. A method for virtualization of ambient environments in live video streaming, comprising: performing motion detection to obtain motion information in a current frame in a live video stream; computing a background model using the motion information; performing background subtraction using the background model to obtain foreground and background pixels for the current frame in the live video stream; refining the obtained foreground and background pixels; generating a virtualized environment for the current frame by substituting the background pixels based on the obtained refined foreground and background pixels; and repeating the steps of pre-processing, performing, computing, refining, generating and encoding for a next frame in the live video stream.