Embedding Clips in Extensions Overlay

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Here are some of the legal issues you will face trying to use clips in an extension.

Relevant sections of the Twitch Developer Agreement

Requirements for Specific Features and APIs
1. Embeddable Experiences

• We encourage you to use Twitch’s embeddable products to showcase Twitch Content. However, you must obtain authorization from the applicable Twitch end users before using their channels’ content to market or promote a commercial product or service.
• Adopt and integrate our embeddable player for all video content. You may not use any other player or system to display Twitch video content without Twitch’s prior written permission.
• Do not modify, replace, interfere with, block, cover, or obscure: (a) the functionality of embeddable experiences, including advertisements within the player; or (b) the Twitch Marks.

So if you’re monetizing your extension, you must only show clips from channels that have given consent, such as the channel that installed your extension.

Using a browsers <video> player instead of the Twitch Embed for clips would be violating both the requirement to use the embeddable player for all video content, as well as modification of the embeddable experience by stripping out all of the Twitch Player functionality to use the browsers video player.