Twitch’s gifted subscription system, once a hallmark of viewer generosity, is under fire again. A former high level manager at the Amazon owned streaming giant has blown the whistle on what they describe as a predatory feature, the hard cap on 1,000 gifted subs per month per channel.
According to the insider, this isn’t about technical limitations it’s a deliberate ploy to maximize profits by forcing more transactions through Twitch’s cut. As the platform grapples with layoffs and ad revenue woes, this revelation sheds light on the tensions between fostering creator communities and corporate bottom lines.
The Gifted Subs Controversy
Gifted subs allow viewers to purchase subscriptions for others, boosting a streamer’s revenue (Twitch takes 50%, creators get 50%). In 2023, Twitch rolled out bulk gifting, letting users drop hundreds at once for events like subathons. But the 1,000 sub ceiling quickly drew backlash:
- Pro Creator View: It kills the hype of massive giveaways, reducing engagement.
- Twitch’s Defense: Prevents server overloads and spam.
- Insider Take: Pure greed, per the former manager. dexerto.com
Data from Streamlabs shows gifted subs accounted for 20% of all sub revenue in 2024, underscoring their importance. Yet, with the cap, mega donors must split gifts across months, racking up extra fees for Twitch.
As a former member of the Twitch product team who built out gift subs, I can tell you the only reason this feature exists is that internal staff are scrambling to hit EoY revenue targets with “low-hanging fruit” features to squeeze every penny they can get to keep leadership… https://t.co/vV89Gmu5ok
— dev iyer (@dev1yer) November 27, 2025
Ex-Manager’s Bombshell Claims
The whistleblower, after leaving Twitch in mid-2025, pulled no punches. Having overseen product features for years, they claim internal docs reveal the limit was engineered to “optimize monetization streams.” Key quotes from the interview
- On the feature’s true purpose: “It’s not about stability—it’s to squeeze every penny. They modeled it so that big gifters would have to buy in smaller batches, ensuring Twitch gets a bite on each one.”
- Regarding subathons: “We knew it would frustrate top creators like xQc or Pokimane, but the revenue projections won out. One internal memo even joked about ‘gifting fatigue’ turning into repeat business.”
- On broader culture: “Twitch talks community first, but Amazon’s fingerprints are everywhere. Layoffs hit 500 last year where do you think the savings went?”
The manager, who requested anonymity due to NDAs, shared screenshots of Slack threads (redacted for privacy) showing execs debating the cap’s “elasticity” how much users would tolerate before churning to rivals like Kick.
Twitch’s Response
Twitch declined to comment directly on the allegations but reiterated in a statement: “Our gifted sub tools are built for sustainability and joy. Limits help maintain a fair ecosystem for all streamers.” No mention of removing the cap.
The story has ignited X, with #TwitchGreed trending. Creator Ludwig Ahgren tweeted: “If this is true, it’s the final nail. Time to diversify.” Meanwhile, Kick’s co-founder offered “unlimited gifting” as a jab at Twitch.
Broader implications? As streaming wars heat up, features like this could accelerate creator exodus. Twitch’s sub revenue dipped 5% YoY in Q3 2025, per leaked filings—perhaps a sign the penny-squeezing is backfiring.
