First, welcome to the forums!
Quote: "Would this have something to do with the camera being fixed behind the model "
Very probably. Imagine an RPG where the camera always follows the central character - if the character turns left or right (Y-rotates) the camera automatically tracks with him so that it's always pointing behind him. Only the movement of the scenery makes you aware that the character has moved.
Now - and I'm guessing on this, as i don't know what code you're using - if you have no scenery (just the blue backdrop) there is nothing you can judge movement by. Y-rotate your object and the camera will rotate as well to keep you looking at the same point.
Hope this helps!
Regards
RTR
"I wish I was a spaceman, the fastest guy alive. I'd fly you round the universe, in Fireball XL5..."