Much of what people have feared has arrived. Ever since it was first announced that Youtube was buying out TwtichTV, there was concern that they’d apply their controversial ContentID policy to the service in some format. Well, those that feared that were exactly right. Twitch announced a new partnership with the software company Audible Magic, which has previously worked with the music industry "to scan past and future [videos-on-demand]" for copyrighted music. If a scan reveals audio that infringes on a copyright claim, the audio will be muted for a maximum of 30 minutes. This will only be for pre-recorded videos on demand, but live broadcasts will not be scanned. Within their announcement, Twitch did provide some sources of free-to-use third party music.
It sounds like videos aren’t going to be taken down outright. So as of right now, it’s nowhere near as draconian or as controversial as the ContentID system. We’ll have to see how things progress from here on out.