Former Twitch manager claims 1000 gifted sub feature exists to “squeeze every penny”

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So, I was reading about the new 1000 gifted sub feature on Twitch, and apparently, a former employee who worked on how creators make money says it’s really about Amazon pushing Twitch to hit certain revenue goals. It sounds like it’s less about supporting streamers and more about numbers, honestly.

Starting November 26th, Twitch allowed viewers to buy 1000 channel subscriptions all at once. Normally, this would cost $6,000, but Twitch is offering a $1,000 discount when purchasing the 1000-subscription bundle.

As soon as Twitch announced this new feature, everyone started complaining. A lot of big streamers were really worried that their viewers might end up spending too much money and getting into debt, or even disputing the charges later. Basically, people thought Twitch was just trying to make more money and didn’t care about us.

The feature was taken down following negative feedback, probably because a different, temporary discount was introduced instead. However, people are still talking about it.

Former Twitch Project Manager Dev Iyer says the platform only added the feature to gift 1000 subscriptions at a time to boost its yearly revenue.

Ex Twitch dev says platform is under pressure from Amazon

On X (formerly Twitter), Iyer – a key figure in the development of features like Hype Trains and Leaderboards on Twitch – criticized the platform’s recent decision regarding the 1000 gifted subscription option.

Having worked on the Twitch team that created gifted subscriptions, I know the main reason it was launched was to quickly boost end-of-year revenue. It was an easy win – a simple feature designed to generate extra income and satisfy company leadership.

— dev iyer (@dev1yer) November 27, 2025

According to a former Twitch employee involved in creating gifted subscriptions, the feature was implemented primarily to quickly boost end-of-year revenue. It was seen as an easy win to maximize profits and satisfy company leadership.

He added that he believes Twitch employees are well-intentioned and supportive of creators, but the platform faces significant pressure from its parent company, Amazon, to generate profits.

Honestly, it feels like the people making the game prioritize hitting their money goals over what’s actually good for us players. It’s frustrating because it seems like making a profit is usually more important than making sure we’re all having a healthy and fun experience.

Last year, Twitch reportedly lost money, despite posting an annual revenue of $2 billion in 2024.

Twitch staff explains why 1000 gifted sub feature was added

So, someone asked about gifted subs on Twitch, and Mike Minton, who’s in charge of product stuff over there, basically said it wasn’t added just to make more money. He pushed back on that idea, saying it wasn’t about hitting revenue goals.

Minton explained that the change was made to simplify things for a small group of users who frequently give generous gifts. He added that this adjustment isn’t expected to significantly increase overall revenue, as these users were already giving substantial amounts.

Iyer, however, wasn’t buying it.

Hi Mike, hope you’re doing well! I get why gifting is good for business and creators on the platform. However, when the amounts get really high – like thousands of dollars in a single gift – I think taking a percentage actually hurts more than it helps. It would make a lot more sense for that money to be directly donated to the streamer…

— dev iyer (@dev1yer) November 28, 2025

He acknowledged the business logic and advantages for creators that gifting offers, but argued that when large sums of money are involved in a single transaction—thousands of dollars—taking a percentage of the gift actually hurts more than it helps.

It would be more helpful if that money was donated so the streamer could improve their setup, compensate moderators, and cover essential expenses.

Earlier this year, Twitch CEO Dan Clancy made a direct donation to a streamer while she was live, rather than purchasing subscriptions for her. This allowed her to receive the full amount of the donation without Twitch taking a percentage.

Twitch seems likely to reinstate the ability to gift 1000 subscriptions, but some streamers are now trying to discourage viewers from spending excessive amounts of money.

Asmongold has announced he’ll ban viewers who receive $5,000 worth of gifted subscriptions unless they can demonstrate they have the financial means to support it.

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2025-11-28 19:19