You can check out ManyCam, which might serve to be the right virtual webcam utility for you. Though there is a Pro version available, the free version of ManyCam would serve your purpose in my opinion.
- Lets more than one application to access the camera feed together at the same time.
- Add static or dynamic effects to your webcam feed.
- Overlay texts or draw objects over the video.
- Choose video files or images to be used as the webcam source.
- Setup playlists of videos to be sent as the webcam feed to applications.
- Picture-in-Picture mode which allows one video to be embedded within another.
WARNING: 3 out of 50 anti-virus engines in VirusTotal are showing a RED alert for the ManyCam installation file. This could possibly be due to the Toolbar which now comes bundled with the application.
But, you can (and, should) choose to not install this toolbar by clicking on Cancel when the Install the MyStart Toolbar window appears (just unchecking the two boxes wouldn't do any good). This way, there might not be any harm to your computer.
Otherwise, the program is reportedly safe and the first versions of the application have been pure, without even the problem of the toolbar. If you are too worried (you needn't be, in my opinion), you can just Google for an old version of the application without this toolbar.