Title: Twitch’s Branded Content Guidelines: The Implications for Streamers
Introduction
Live streaming platform Twitch recently announced updates to its branded content guidelines, which caused immediate backlash from streamers and advertisers alike. Many creators saw the sudden changes as a way for the Amazon-owned company to further embed itself between streamers and their sponsors. In this article, we’ll delve deeper into Twitch’s branded content guidelines, the implications for streamers, and what this means for the future of live streaming.
The Twitch Branded Content Guidelines Change
On June 7th, 2023, Twitch announced sweeping changes to the way streamers can advertise on their platform. The updates to its branded content guidelines – the set of rules that dictates how streamers can display endorsements, sponsorships, and other paid promotions, aimed to disallow many popular ad formats that streamers often incorporate into live streams and placed severe restrictions on in-channel sponsorships that many Twitch streamers rely on for the bulk of their revenue.
The changes would have taken effect in less than a month, on July 1, and would have upended existing sponsorship deals for many top streamers. Critics were quick to point out that Twitch’s “sudden” changes to branded content guidelines were a way for the company to further embed itself between streamers and their sponsors.
What The Changes Meant For Streamers
Streamers regularly display “recorded” ads, and the changes announced by Twitch would have banned all such ads, with the exception of relatively small display ads that take up less than 3% of the screen. Changes to branded content rules aren’t the only hornet’s nest the live streaming giant has kicked around of late. Last year, Twitch ignited an adjacent firestorm when it announced plans to phase out the 70/30 revenue split, a split that allowed some of the top streamers to pocket a bigger chunk of their profits.
Because the streaming economy isn’t favorable to creators, most serious streamers rely on ads and sponsors to fill that monetization gap. By implementing the changes to its branded content guidelines, Twitch was ultimately making it harder for streamers to earn a living on their platform.
The Implications For Advertisers
Besides harming streamers earning potential, Twitch’s branded content guidelines change poses further implications for advertisers. Twitch gets a 50% cut of creators’ profits through its standard revenue-sharing deal, but it can’t get a piece of the lucrative deals streamers negotiate with sponsors and advertisers. With streamers becoming limited to the smaller ad spaces, advertisers will have less space to promote products and services in-stream. This change by Twitch may drive advertisers to explore alternative avenues for their promotions to reach audiences.
The Backlash
Needless to say, the reaction was strong and fast. Big channels and smaller streamers alike were quick to criticize Twitch for the abrupt change in branded content rules, highlighting how the changes would affect their ability to earn money on the platform. Many creators saw the sudden change in branded content guidelines as a way for the Amazon-owned company to further embed itself between streamers and their sponsors.
It remains unclear whether Twitch will revisit its updated branded content guidelines or provide any updates. Regardless, the impact of the backlash will undoubtedly drive changes in platform monetization and relationships between the platform, streamers, and advertisers.
The Future of Live Streaming
Live streaming has become a popular avenue for content creators to make a living and generate revenue. Platforms were initially viewed as generous partners for content creators. However, the recent Twitch developments highlight the shift in the industry as companies look for ways to maximize their profits. Because streaming is still new, platforms and advertisers are still figuring out how to make monetization models work for all stakeholders, especially as creators become more demanding in their needs and wants.
If streamers continuously receive the short end of the stick, this will likely stoke more backlash from creators and communities alike. It is important to remember that Twitch’s policies and changes occur within the greater context of the industry’s ever-evolving landscape, making it essential to keep an eye on industry trends and movements.
Summary
Twitch announced changes to its branded content guidelines that would have placed severe restrictions on in-channel sponsorships. The changes have implications for streamers and advertisers, with streamers having less ad space to promote products and services in-stream. Twitch’s updated branded content guidelines drew immediate backlash, with many alleging the company’s motive was to further embed itself between streamers and their sponsors. The backlash poses a risk of further affecting monetization models, affecting the relationships between platforms, streamers, and advertisers. As the industry continues to evolve, it is important to keep an eye on changes and be mindful of the needs and wants of all stakeholders.
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One day later Twitch announced sweeping changes to the way streamers can advertise, the company is pulling out.
On Tuesday, Twitch announced updates to its branded content guidelines – the set of rules that dictates how streamers can display endorsements, sponsorships, and other paid promotions. Twitch noted the mounting criticism at the time, but it took until Wednesday afternoon for the company to change course.
“Yesterday, we released new Branded Content Guidelines that impacted your ability to work with sponsors to increase your streaming revenue,” the company wrote. “These guidelines are bad for you and bad for Twitch, and we will remove them immediately.”
The changes would have placed severe restrictions on in-channel sponsorships that many Twitch streamers rely on for the bulk of their revenue, disallowing many popular ad formats that streamers often incorporate into live streams.
To top it off, the massive changes, which would have upended existing sponsorship deals for many top streamers, would take effect in less than a month, on July 1.
The reaction was strong and fast. Big channels and smaller streamers alike were quick to criticize Twitch for the abrupt change in branded content rules, highlighting how the changes would affect their ability to earn money on the platform.
Many creators saw Twitch’s sudden changes to branded content guidelines as a way for the Amazon-owned company to further embed itself between streamers and their sponsors. Twitch gets a 50 percent cut of creators’ profits through its standard revenue-sharing deal, but it can’t get a piece of the lucrative deals streamers negotiate with sponsors and advertisers. Because the streaming economy isn’t actually that favorable to creators, most serious streamers rely on ads and sponsors to fill that monetization gap.
Streamers regularly display “recorded” ads: advertising that is displayed directly on streams, whether through banners, video or audio commercials. The changes announced Tuesday would have banned all such ads, with the exception of relatively small display ads that take up less than 3 percent of the screen.
confusion abounded above that three percent limit, with some streamers pointing out that even Twitch’s “good” example ad took up more screen space than would now be allowed.
Changes to branded content rules aren’t the only hornet’s nest the live streaming giant has kicked around of late. Last year, Twitch ignited an adjacent firestorm when it announced plans to phase out the 70/30 revenue split that allowed some of the top streamers to pocket a bigger chunk of their profits. While the Twitch community has long called for the company to move all streamers to that more favorable ratio, the company outlined a vision that would land everyone in a much less lucrative 50/50 split.
Twitch backtracks on branded content changes after streamer backlash
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