Streaming giant Twitch has been forced to backtrack on its branded content guidelines in the face of mounting backlash from its user community. On June 6, controversy erupted when Twitch unveiled updates to its policies regarding third-party advertisements. Notably, Twitch intended to prohibit the use of burned-in ads and restrict the size of ad overlays to a mere 3% of the screen space. These changes would have severely restricted streamers' ability to advertise during their broadcasts.Unsurprisingly, these announcements triggered a strong negative response from Twitch's streaming community. Prominent streamers like Asmongold voiced their opposition to the guidelines, even going as far as calling for a boycott of Twitch if the changes were implemented. Well-known YouTuber MrBeast also stood in solidarity with Twitch streamers, advocating against the platform's actions. He urged Twitch to prioritize supporting creators in maximizing their earnings rather than impeding them. Additionally, MrBeast expressed his willingness to stream on a competitor's platform as a form of protest on behalf of Twitch streamers. In response to the severe backlash, Twitch was compelled to issue an apology. However, as the backlash continued to escalate, the platform has now released a fresh statement addressing the situation. The statement acknowledges the negative impact of the recently introduced Branded Content Guidelines on streamers' ability to collaborate with sponsors and increase their streaming income. Twitch recognizes that these guidelines are detrimental to both the streamers and the platform itself, and as a result, it has decided to immediately remove them. The statement also emphasizes the significance of sponsorships for streamers' growth and financial stability, assuring that Twitch will not interfere with streamers' freedom to establish direct relationships with sponsors.
Twitch's announcement received a varied and multifaceted response from its user base. While some users warmly embraced the statement, others voiced their discontent and criticized Twitch for what they perceived as a lack of consideration for creators. These individuals went so far as to suggest that the platform's decision to reverse its course was solely motivated by the fear of a large-scale boycott. Many also expressed their desire for content creators to unite and pressure Twitch into changing its 50-50 revenue split policy.
It is worth mentioning that Twitch CEO Dan Clancy has also addressed the situation, acknowledging the error in Twitch's Branded Content Policy and offering his sincere apologies. He recognized the significant impact that sponsorships have on Twitch and the broader creator economy. Furthermore, he assured users that Twitch would continue operating as it had before.