Twitch takes u-turn on new advertising rules amid severe backlash from streamers

The Amazon-owned livestreaming service had initially announced plans to restrict the size and type of ads used by content creators on Twitch

In a surprising turn of events, Twitch has decided to scrap its controversial new advertising rules after facing severe backlash from streamers. The Amazon-owned livestreaming service had initially announced plans to restrict the size and type of ads used by content creators on Twitch, which would have significantly impacted their ability to earn income on the platform.

Twitch's change in policy largely stemmed from the gaming industry's #MeToo moment in summer 2020(AFP)

However, following threats of boycotts and streamers migrating to other platforms, Twitch has reversed its policy, although some streamers claim that not all the new rules have been completely rolled back.

The announcement of the ad changes sparked widespread outrage among streamers, who rely on sponsorships and ad revenue to support their channels and livelihoods. In a tweet that garnered a staggering 13.4 million views, Twitch acknowledged the negative impact of the new rules and emphasized the importance of sponsorships for streamers' growth and income. They assured streamers that they would retain ownership and control over their sponsorship business and expressed a commitment to working with the community to create the best possible experience on Twitch.

However, despite the platform's backtrack and apology for the "confusion" surrounding the rules, some streamers have decided to leave Twitch for good. One such streamer, Marco (known as Stallion), revealed his intention to part ways with the platform, citing ongoing concerns about discoverability and the platform's focus on financial gains rather than the well-being of its creators.

The initial changes would have prohibited streamers from embedding ads directly into their streams, whether in the form of videos. audio, or other formats. Additionally, the size of logos would have been limited to just 3% of the screen size, hindering visibility for streamers who typically rely on prominent ad placements.

Twitch's usual revenue sharing model involves paying streamers 50% of the money collected from subscribers, with larger streamers negotiating a 70-30 split. However, Twitch does not receive any revenue from streamers' ads or donations, setting it apart from platforms like YouTube, which takes a 30% cut of fan donations.

The impact of the ad changes extended beyond individual streamers, raising concerns for charity events like Games Done Quick. The new rules threatened the visibility of logos during these events, which heavily rely on large, screen-filling displays to support their fundraising efforts. The exact extent of the rule revisions and which specific changes will be rewritten by Twitch remains unclear, leaving some streamers dissatisfied and feeling that irreversible damage has already been done.

For streamers like Stallion, the decision to leave Twitch represents a necessary step towards pursuing alternative platforms that offer better discoverability and prioritize the interests of creators. Although the move is daunting, particularly for those whose full-time careers depend on streaming, Stallion believes it will ultimately be the best long-term decision for his career.

The battle between streaming platforms, content creators, and advertising policies continues, with Twitch's retreat signaling the power of streamers' voices and their collective ability to influence platform decisions. As the livestreaming landscape evolves, the struggle for fair revenue sharing and the protection of streamers' livelihoods remains a key issue that will shape the future of the industry.