TOS clarifications, hiding, and image-based guidelines
Twitch,
Firstly, let me clarify to you that I enjoy artistic nudity and am not a puritanical person. I also want to clarify that some people who didn't deserve to get banned got banned today who didn't draw any genitalia and who abided by the new TOS, and that you need to fix your accounting.
However, this is regarding the "opening of Pandora's Box" that you have willed over the course of a singular day.
Whether I like their art or not, the "sexual content" warning isn't sufficient, there absolutely needs to be (1) a censored thumbnail for 18+ streams (such as the drawing of NSFW art, as well as (2) two separate categories hidden from view and turned off from default view for minors. These would include a NSFW art subdivision and "tasteful nudity" subdivision.
There are obviously still risks with this, but this is better than going into the situation with a half-baked plan. (3) Ideally, they should require credit card verification or some other form of ID, but if that's not possible, even having the other two is fine.
From what I can surmise just glancing on my homepage yesterday, your algorithm doesn't launch mass suppression like Twitter and it certainly doesn't prevent minors from seeing this content, at least in the thumbnails. I can tell you this as a certainty because some people (not minors) from my Discord have already complained to me about this, that you can see it without any account.
Let me give you the long and short of if: If the media frenzy is any indication, it's only a matter of time before Twitch has some articles written on it by neurotic journalists regarding its failure to protect children. This might even result in Twitch getting restricted in other countries in the future. That is, unless you put up appropriate safeguards
You need to commit to the three recommendations above or immediately roll back your ToS change until it can be properly implemented, headache as that may be. This is not calling for a blanket ban, it is calling for sanity. You are risking the realization of the slippery slope. I think this art should be allowed to stay if at the very least it is properly separated into a different category that only shows up for a certain age range, there is thumbnail censorship on top of the warning, and ideally (I know this one is difficult to implement and more of an ideal) age verification.
You are a gaming platform, not DeviantArt or NewGrounds. Have some integrity and actually plan these things out.
In addition to the above three points, please also stipulate clearly and explicitly (and not imply) that artistic nudity does not include (1) sexual *********** or (2), masturbation. This has been a topic of contention in every stream that I have visited yesterday and it needs to be dealt with. You should also have images of what is and isn't allowed in a cartoon format for creators, just the outlines of two oversimplified characters having sex, same as the ones you could find on Healthline.
For non-18+ drawing streams, I believe you should also clarify that drawing characters without any nipples or genitalia as part of the drawing process when first outlining, sketching, or coloring is fine. That's probably the lion's share of complaints from SFW artists anyways.
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StillHidden commented
It would have been nice if Twitch opened the Pandora's box so to speak, effective on a specific date in the future. That way it would stay banned for now, until there is effective tooling to allow viewers to opt-in or opt-out of the now-unprohibited content. However I think the cat is out of the bag. Rolling it back would be a nightmare, for any creator that is participating in the newly allowed content and isn't adequately informed of the rollback.
Twitch working quickly to have filters available to remove Sexual Themes labelled content for logged in users, and having it automatically filtered out for non-logged in users is all we can reasonably ask for in my opinion.