Twitch's New Monetization & TOS Changes: What You Need To Know

Jump to section:

• Introduction
• Update #1: Advertisements
• Update #2: Simulcasting
• Update #3: Minimum Content Requirements
• Aftermath
• Strategic Play
• To Wrap Up

Introduction

It seems to be a cycle at this point. They push an update, get backlash, apologize, retract their update, and do the same thing over again.

Let’s go over what the updates actually entail, and then see how this plays into Twitch’s strategy.

Update #1: Advertisements

The first update applies to advertisements.

Section 12 of their Terms of Service states that “[t]hird-party advertising networks are not allowed to serve advertising through the Twitch Services”, which can mean to include embedded advertisements or banner ads.

Burn-in ads and audio are now not allowed. These include embedded advertisements and banner ads.

The reason they made these changes is because they’re trying to get brands to directly work with Twitch. And they want more control over the events ecosystem and major productions displayed on Twitch, so they can take the deal and cut.

They’ve done this with Esports events in the past, so this isn’t entirely new.

By forcing brands to work directly with them, Twitch is also pushing talent agencies out of the equation by running through their own sales team.

But Twitch isn’t able to handle this task themselves, because they’re already unprofitable and bleeding employees with all the Amazon layoffs.

This will also destroy this particular source of income for smaller creators, limiting creators’ ability to deliver on-screen advertising. Creators and sponsors have built this way of advertising into the creator economy, so limiting it hurts creators directly.

The policy said that burn-in ads (like branded sponsorship codes or logos) shouldn’t take up more than 3% of the full stream screen. That’s 332x187 pixels on a 1920x1080 resolution stream.

As of now, creators have until July 1st to make changes necessary to comply with this rule or they risk breaking their contract.

But does Twitch really have the capacity to enforce this policy?

They’d have to go by every streamer individually (there are over 1 million streamers per month) to check if their branded content is taking up less than 3% of their screen.

Update #2: Simulcasting

The second update applies to simulcasting.

Simulcasting, or multistreaming, is where you stream to multiple platforms at the same time.

You are allowed to multistream to mobile-first competitors like Instagram and TikTok. Previously, this was not allowed for Twitch Affiliates and Partners when it came to direct competitors like YouTube and Facebook. Section 11 of their Terms of Service first stated that “[w]hen you are streaming live on the Twitch Services you may not simultaneously live stream or broadcast (“Simulcast”) on any other “Twitch-like Service,” meaning any web-based network, platform, or service that supports live streaming of user generated content.”

But as of October 2023, Twitch has updated its policy to allow simulcasting for all creators, regardless of contract status. Now, Section 11 states that “[w]hen you are streaming live on the Twitch Services you may simultaneously live stream or broadcast (“Simulcast”) on any other network, platform, or service that supports live streaming of user generated content.”

This change lifts exclusivity restrictions, letting streamers broadcast their content simultaneously on Twitch and other platforms. However, Twitch still imposes certain guidelines.

The Simulcast Guidelines state that streamers are required to keep the same quality of their Twitch streams on other platforms, so you can’t for example stream at a higher bitrate to YouTube while simulcasting at a lower bitrate to Twitch. You may also not provide links or direct your community to leave Twitch for another platform on which you’re multistreaming. Lastly, you can’t show combined activity from other platforms or services on Twitch, so showing a Restream.io chat overlay isn’t allowed.

While this new policy allows more flexibility for creators, it’s obviously still subject to some fine print.

This shift reflects Twitch’s acknowledgment of increasing competition from other platforms and the growing demand for greater streaming freedom.

So, despite the apparent loosening of rules, Twitch’s strategy of maintaining control over its platform, while allowing for simulcasting, is a step toward adapting to the evolving streaming landscape.

Update #3: Minimum Content Requirements

The third update applies to minimum content requirements, which flew a bit under the radar.

Section 2.1 of the Monetized Streamer Agreement applies to both Affiliates and Partners, and used to state that they must “provide a consistent amount of live content, program quality live content, regularly interact with and engage viewers of your Twitch Channel, and respond to live viewers of your Twitch Channel via Twitch chat.”

But what can be considered a consistent amount of content?

As of now, the clause isn’t mentioned in the agreement anymore.

Section 2.1 now only mentions that you agree to “generally engage with viewers of your Twitch Channel through chat or other live means as applicable.”

So this type of minimum engagement or interaction requirement isn’t applicable anymore, and it’s weird it was added in the first place as it has never been in the agreement before the June 2023 update.

Aftermath

The response from Twitch’s community was overwhelmingly negative. Creators expressed frustration, and Twitch quickly backpedaled, claiming they undid the updates.

However, while their platform exclusivity isn’t really intact anymore, their advertising rules are.

The apology feels empty, and creators remain at the mercy of Twitch’s ever-evolving rules.

Twitch says it’s a creator-focused platform, but the reality paints a different picture. If Twitch were truly creator-friendly, they would stop exploiting the community with constant nit-picky shifts in policy.

Strategic Play

The question arises: is this a deliberate strategy?

It’s entirely possible.

This could be part of a negative marketing strategy designed to provoke strong reactions, generate buzz, and attract more creators to Twitch’s platform. It might even be an attempt to help Twitch become more profitable.

Since Amazon acquired Twitch in 2014, the platform has struggled with profitability.

With rising costs and constant pressure to deliver, Twitch has pushed for more ads, permanent lower sub splits, and introduced several policies that seem geared toward maximizing profit at the expense of creators.

On the other hand, if this isn’t a deliberate move, then Twitch is simply poorly managed.

For the platform to thrive, they would need to change course by prioritizing creators, raising sub splits, cutting down on intrusive ads, and easing restrictions on content-sharing opportunities. Only then could they begin rebuilding the trust they’ve lost with their community.

However, based on past actions, it seems Twitch is more concerned with the bottom line than with fostering a positive creator experience.

To Wrap Up

This post provides a summary of Twitch’s recent updates and the ongoing cycle of controversy surrounding them.

If anything, it serves as a reminder that diversifying content platforms and exploring alternatives might be necessary for creators in the long run.

Thanks for reading!

Sources

      Devin Nash. (2023, June 7). Twitch’s Ambition to Control Your Content. [Video.] YouTube. https://www.youtube.com/watch?v=sOfmWFr_sm4

      Devin Nash [@DevinNash]. (2023, June 7). Twitch hasn’t walked back forced platform exclusivity for all creators. [Tweet.] Twitter. https://twitter.com/DevinNash/status/1666563595897847810

      Downs, N. (2023, June 6). Let’s Take A Minute To Talk About Twitch’s New Branded Content Guidelines. Medium. https://medium.com/@MyLawyerFriend/lets-take-a-minute-to-talk-about-twitch-s-new-branded-content-guidelines-8cda2cc43c92

      Downs, N. (2023, June 8). Let’s Take A Minute To Talk About Twitch’s New Monetized Streamer Agreement. Medium. https://medium.com/@MyLawyerFriend/lets-take-a-minute-to-talk-about-twitch-s-new-monetized-streamer-agreement-a948cd2d8ba4

      Twitch. (2023, June 8). Terms of Service. Twitch. https://www.twitch.tv/p/en/legal/terms-of-service/#12-advertisements

      Twitch. (2023, June 6). 2023 Updated Monetized Streamer Agreement. Twitch Support. https://help.twitch.tv/s/article/2023-updated-monetized-streamer-agreement

      Twitch. (2023, June 6). Branded Content Guidelines. Twitch Support. https://help.twitch.tv/s/article/branded-content-policy

      Twitch [@Twitch]. (2023, June 6). Today’s branded content policy update was overly broad. This created confusion and frustration, and we apologize for that. [Tweet.] Twitter. https://twitter.com/Twitch/status/1666183145526538240

      Twitch [@Twitch]. (2023, June 8). Our revised branded content policy gives you more flexibility. You can now incorporate non-Twitch advertisements as long as it follows the guidelines. Additionally, you can advertise on a limited basis (3%) per broadcast. [Tweet.] Twitter. https://twitter.com/Twitch/status/1666232059840494594