In a striking development that sent shockwaves through the gaming world, Twitch – the famed streaming platform – unleashed a comprehensive set of new advertising rules that would significantly affect the revenue of both big and small streamers alike. The new policies will transform how creators generate revenue from branded content in their streams. Should the policy go into affect, this will completely reshape the dynamics of Twitch’s relationship with its content creators.
Twitch’s newly announced Branded Content Guidelines are:
- On-stream logos are limited to 3% of screen size.
- Burned-in Video Ads are NOT allowed.
- Burned-in Display Ads are NOT allowed.
- Burned-in Audio Ads are NOT allowed.
Twitch’s newly unveiled regulations primarily target branded content, which has been a critical income source for creators. These guidelines restrict on-stream logos to three percent of the screen size and prohibit burned-in video, display, and audio ads. This term refers to prerecorded advertisements directly embedded into the stream using software such as OBS and Xsplit.
The announcement led to a flurry of discontent among streamers who took to Twitter and Twitch to express their dismay, with notable figures like Asmongold even contemplating leaving the platform. The changes present a significant obstacle for creators who have been leveraging branded content partnerships to supplement their income amidst the contentious 50/50 revenue split introduced by Twitch in September 2022.
These new ad rules particularly jeopardize top streamers and major events such as The Game Awards and The Streamer Awards. Those events are heavily reliant on sponsors and their prominent placement in content for profitability. The implications also extend to charity streams, a popular Twitch feature that has raised substantial funds for charitable causes.
In the wake of the ensuing outcry, Twitch attempted to soothe disgruntled streamers with a series of tweets promising clarifications to the policy’s ‘overly broad’ language. However, the specifics remain ambiguous, and the Twitch community is still gathering pitchforks and torches.
As the controversy escalated, calls for a platform boycott started echoing through the streaming community. High-profile streamers, such as Asmongold, have urged fellow content creators to consider moving to competing platforms like YouTube, Kick, or Rumble. Influencer network and media company OTK also joined the chorus, with its co-founder Tips Out threatening to leave Twitch if the rules are enforced.
With Twitch’s new ad guidelines set to come into effect on July 1, it remains to be seen how this turmoil will pan out. The episode serves as a stark reminder of the delicate balance platforms like Twitch must maintain between monetization strategies and the interests of their creator communities.
As the future of branded content on Twitch hangs in the balance, the gaming world waits with bated breath.
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