gly, Twitch recently updated its Branded Content Guidelines with restrictive new conditions that came as a shock to many. The new rules included a ban on “burned-in” video ads, audio ads, and limitations to on-screen logos to just 3% of the screen size. This has sparked massive controversy among streamers and viewers alike, eventually resulting in Twitch issuing an apology.
Many streamers, which includes the biggest names on the platform, expressed their frustration and concern over the changes. These alterations not only have the potential to impact streamers’ revenue streams from brand sponsorships but even force them to leave Twitch. Particularly after following the introduction of the contentious 50/50 revenue split last year. Some prominent streamers have already started considering switching platforms or considering other options.
The implications of these guidelines reach beyond individual streamers. Many highlighted the negative effects the changes would have on charity streaming, as streamers often utilize banners and overlays provided by charities to raise funds. Another major hit would be on Esports events and major productions like The Game Awards which would also experience significant impacts on their sponsorship income.
Twitch Issues Apology Over Unacceptable Changes
Today’s branded content policy update was overly broad. This created confusion and frustration, and we apologize for that.
— Twitch (@Twitch) June 6, 2023
Following the severe backlash, Twitch issued an apology. The publisher admitted that the updated guidelines were too “broad.” It stated that the intention was to clarify its existing ad policy and prohibit third-party ad networks from selling burned-in video and display ads on the platform. Twitch pledged to revise the guidelines to provide clearer instructions and promised to update the community once the changes were implemented. Ironically, Twitch seemed to lay blame on its users. It claimed that the wording on the matter was misunderstood and was updated for clarity (as opposed to public outcry).
Twitch later organized a meeting with staff and Twitch ambassadors to address the concerns raised. Some ambassadors shared details of the discussion on Twitter. The publisher then clarified that branded streams with graphics would still be allowed so long as streamers were aware of the specific ad being run. Its goal is supposedly to prevent random ads from third parties. Twitch also confirmed that it was now open to increasing the 3% screen share limit for logos as well.