Twitch banned burned-in ads, streamers revolted, and it scrapped the rules in a day

The Verge reported on 7 June 2023 that Twitch, on the preceding Tuesday, had released new rules about how streamers could display ads. The branded-content guidelines prohibited 'burned in' video, display and audio ads — the first two of which were popular and common formats on the platform. Twitch apparently had not discussed the new rules with ambassadors or streamers beforehand, and many were furious.

Creators took to social media to decry the changes. OTK, a network of high-value streamers including Asmongold, published an open letter telling Twitch that 'the once-unique and admirable vision of a creator-first platform now feels like a fading and distant dream.' Charity streamers feared the rules would hurt fundraising, and esports creators said they would make it harder for the already struggling esports industry to monetize broadcasts.

Twitch first apologized for the rollout and said it would rewrite the rules for clarity; the rewrite turned into a full rescission. In a Twitter thread the company said: 'These guidelines are bad for you and bad for Twitch, and we are removing them immediately... We will not prevent your ability to enter into direct relationships with sponsors — you will continue to own and control your sponsorship business.' The ads-policy page section on prohibited and allowed ads was removed entirely.

Full rescission of the guidelines within roughly 24 hours, after an OTK open letter and public creator backlash; The Verge called it another earnings grab that backfired.

The banned burned-in video and display ad formats were popular and common, so the policy hit mainstream practice, not edge cases.

Twitch rolled the rules out without discussing them with ambassadors or streamers first.

Sponsorships are critical to streamers' income, so creators read the rules as another attempt to take a share of their earnings.

Charity and esports creators faced disproportionate harm to fundraising and broadcast monetization, widening the coalition against the change.

Platform rules that touch creators' sponsorship income cannot land unannounced: banning the community's livelihood can force a full reversal, not a clarification.

Twitch removed the branded-content guidelines the day after announcing them and stripped the prohibited-ads section from its ads policy page, leaving an archived version as the record of the short-lived rules. The company committed not to prevent direct sponsor relationships and said it wants to work with the community on future rules; The Verge noted the episode as another perceived earnings grab that backfired.