Twitch Reverses Controversial Ad Policy After Streamer Backlash

Twitch has reversed its decision to impose restrictions on in-channel sponsorships, which would have impacted streamers' ability to earn income. The changes were set to go into effect on July 1 and would have disallowed many popular ad formats that streamers commonly embed in livestreams. The sudden changes were met with backlash from big channels and smaller streamers alike, who viewed it as a way for Twitch to further insert itself between streamers and their sponsors. Twitch takes a 50 percent cut of creator earnings through its standard revenue sharing agreement, but isn't able to get a piece of the lucrative deals that streamers negotiate with sponsors and advertisers.