Twitch Faces Uproar Over Branded Content Guidelines and Makes a Surprising Move

Twitch faced significant backlash from its user community when it attempted to update its policies on third-party advertisements on June 6. The proposed changes included a ban on burned-in ads and a limit on ad overlays to only 3% of the screen space, which would have had a major impact on streamers' ability to advertise during their broadcasts. The response from the streaming community was overwhelmingly negative, with prominent figures such as Asmongold and MrBeast speaking out against the guidelines. Many creators urged Twitch to prioritize their ability to earn a living, rather than imposing restrictions that would hinder their success. MrBeast even considered streaming on a competitor's platform in protest of Twitch's actions.

After facing significant backlash, Twitch issued an apology, but as the situation continued to escalate, the platform released a new statement addressing the issue. The statement recognizes the negative impact that the recently introduced Branded Content Guidelines have had on streamers' ability to collaborate with sponsors and increase their streaming earnings. Twitch acknowledges the harm caused to both the streamers and the platform and has decided to remove the guidelines immediately. The announcement emphasizes the importance of sponsorships for streamers' growth and financial stability, assuring them that Twitch will not interfere with their freedom to establish direct relationships with sponsors.

The user response to Twitch's announcement has been mixed, with some warmly embracing the decision while others voicing discontent and criticizing Twitch for a perceived lack of consideration for creators. Some have suggested that the platform's decision was solely motivated by the fear of a large-scale boycott, while others have expressed a desire for content creators to unite and pressure Twitch into changing its 50-50 revenue split policy.

Twitch CEO Dan Clancy has taken responsibility for the mistake made in Twitch's Branded Content Policy and has expressed his apologies. He has acknowledged the importance of sponsorships for Twitch and the larger creator economy. Clancy has also reassured users that Twitch will not be making any significant changes to its operation.