E3's 2021 showcase took place mostly online, in light of concerns surrounding the COVID-19 pandemic. Nintendo opted out of co-streaming the event from the official Twitch platform, and warned that co-streamers may receive DMCA copyright strikes for streaming E3 due to licensing issues with the music that was used in this year's festivities.
Microsoft actually obtained retransmission rights for all of the music that was used in this year's streamed event, though those rights will expire after one year. Should co-streamers not delete their VOD (video on demand) before that year-long period is up, they may receive DMCA copyright strikes.
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Gaming giant Nintendo opted to avoid the issue entirely by not obtaining those rights, and instead issuing a staunch statement in Japanese, which was later translated via the official Twitch Twitter account:
“Nintendo tweeted from their official account that co-streaming today’s event is not allowed, differing from years past. While /twitchgaming has permission to air the show, we won’t be airing the event because all creators can’t co-stream.”
Nintendo's intention was to keep the focus on its Nintendo Direct stream, but that could prove to be a challenge for the company's forthcoming games and their developers, as massive streamers like Valkyrae sharing gaming news is a lucrative path for game studios looking to breach into mainstream popularity.
Music streaming rights have remained a plague to the Twitch platform, which is still locked in an intense battle with the DMCA over music streaming rights.