Definately sounds do-able.
I'd say, put an invisible trigger around the camera. Make it shootable. When shot, make it tigger a little explosion around the camera, and swap the model of the camera with a broken one. That will achieve the effect on the camera-end.
At the monitor-end, have the shootable trigger switch the camera (like you can do manually in-game) to a different camera location which is looking at an animated static background.
That's the general gist of it. I'm sure someone can give the exact details of how to set your triggers and make that static effect.