Public universities are currently facing a challenge in determining how to deliver quality instruction in the face of severe fiscal constraints. With recent technological advances, courses streamed over the Internet (i.e., lecture capture) are now becoming common. However, little research has been published that specifically examines student performance or perceptions of lecture capture courses. This study examined student performance, student satisfaction, and student evaluation of instruction in two large (N greater than 300) introductory Economics course sections. One section employed traditional face-to-face instruction, while the other employed lecture capture (LC). In this case, lecture capture refers to storing videos of actual course lectures on the college's computer server and making them available to students via the course website. Students may view these videos at their convenience, as often as they wish. The instructional methods, assignments, exams, and instructor were the same for each section over two consecutive semesters. At the end of each semester, participating students were asked to complete an online course satisfaction survey. Standard university course evaluations were also compared to examine instructor ratings in the two course delivery conditions. The results showed no significant differences in student performance across the two delivery formats. Results did show a higher withdrawal rate in the LC sections compared to the face-to-face sections (5.1% to 1.9%). Student perceptions of LC were quite positive. Students perceived that they had more control over their learning than in a traditional face-to-face course, and more students believed that LC enhanced their performance, compared to those who thought that it did not. Eighty percent indicated that the LC course was as good as or better than a traditional large lecture course taught face-to-face, and 73% reported that they would choose to take another LC course. The flexibility and convenience of LC were what students liked the most. Finally, students in the LC format actually gave the instructor slightly higher ratings than those in the face-to-face sections, even with all readings, assignments, and exams being the same. This research showed that instruction employing lecture capture resulted in comparable student performance and student satisfaction, relative to face-to-face instruction without lecture capture. The results confirm the viability of this course delivery modality when fiscal limitations are a factor and to improve course access for students. However, based on the observed withdrawal rates and previous research on distance learning, it appears that lecture capture courses may require more self-discipline because students must complete coursework on their own, and it is likely that freshmen and sophomores, who are less familiar with college, may find this medium more difficult. (Contains 3 tables.)