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Digital Backgrounds???

We have had a lot of people interested in having us take their photos lately. I was wondering if any of you have used digital backgrounds?? How do they work?? Is there a screen that you take peoples portraits in front of and then upload them onto the digital background?? I have tried reading up on them but can not really understand much of it?? Any info would be greatly appreciated! Also if you would recommend it or not. Thanks!

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