Suggestion: Improve Ad Delivery on Desktop/PC to Boost Viewer Retention and Reduce Platform Migration
One of the biggest challenges Twitch faces today is viewer drop-off caused by intrusive mid-roll and pre-roll ads, which interrupt the live stream and often lead to missed moments. This has been a major complaint from the community for years, contributing to declining viewership on many channels and even pushing some viewers and streamers toward competitors like YouTube or Kick.
A potential solution specifically for the desktop/PC viewer experience (while keeping mobile unchanged): Instead of overlaying or replacing the main stream video with ads, why not play ad videos in the chat area/sidebar? During the ad:

The main stream video continues playing uninterrupted (picture-in-picture style or full view).
Lower the stream audio volume to about 20% (reducing it by 80%) so viewers can still faintly hear the streamer.
Restore full audio once the ad ends.

This way:

Viewers don't miss any live action or key moments.
Ads still get full visibility and engagement in a prominent spot.
It normalizes the experience, making Twitch feel more viewer-friendly without sacrificing revenue.
It could help retain casual viewers who currently leave during ad breaks, slowing the migration to ad-lighter platforms.

Twitch already uses non-intrusive formats like Stream Display Ads (banners beside the video), so expanding to video ads in the chat area seems feasible and less disruptive. This small change could significantly improve retention and loyalty on desktop, where a large portion of the audience watches.
Thanks for considering community ideas to keep Twitch thriving!