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Police rescued 15 victims aged between six and 15, and arrested 29 people including gang members and people who allegedly paid to watch the abuse in 13 countries.
Over 700 other suspected purchasers of online child sex abuse filmed in the Philippines have been identified, Europol said.
Police and the private sector should monitor the Internet for the growth of alternative forms of payment "as a potential consequence of further migration from traditional payment systems to a new, largely unregulated digital economy," Europol said.
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"The research shows that the live streaming of abuse for payment is no longer an emerging trend but an established reality," the report said.Criminal gangs recruit disadvantaged children or their own children for the abuse.