Twitch in controversy with new bits, gift subs purchase feature

Twitch introduced a new feature allowing streamers to purchase bits or gift subs using their earnings, but it’s started a controversy with many alleging the platform wants to get double the cut from streamers as a result.

Twitch is arguably the most popular live-streaming platform on the web, but it isn’t without its share of controversies. These range from streamers complaining about being banned for no good reason to the CEO admitting there is some discrimination against vtubers. The mentioned examples aren’t small, but they haven’t noticeably affected the platform’s popularity and Twitch is still growing.

Twitch’s current controversy involves a new feature the platform has introduced to purchase bits and gift subs using streamers’ earnings. This has sparked outrage with many claiming Twitch wants to “double tax” streamers with the new feature.

Twitch profit percentage may increase if streamers spend earnings on platform

Twitch takes a percentage of every streamer’s earnings and will get another cut if they spend their payout on bits or subs using the new feature.

Twitch is introducing the option to make streamers’ payouts spendable directly on the platform in the United States. The platform states that the feature will be rolled out globally later in 2025. This feature allows streamers to use the payout they receive from Twitch to purchase bits or gift subs to other content creators. This may seem more efficient and convenient for streamers, but many users are expressing outrage at Twitch.

These users claim that Twitch is trying to increase the cut it receives from streamers, which may ultimately hurt content creators. Twitch already receives a percentage of streamers’ earnings from on-site revenue, whether that comes in the form of user subscriptions to a streamer’s channel or more traditional advertising, and it will get another cut if streamers spend their payouts on the platform.

Multiple streamers have spoken out against the new feature already. Some claimed they won’t give Twitch an additional cut from their earnings. Many content creators already give half their earnings to Twitch, and using this feature would essentially deliver even more money to Twitch.

Some streamers have even gone as far as to allege “nobody” wants this feature and they’d be happier if Twitch increased their earnings rather than creating more opportunities for revenues to be funneled back into the platform. The high share Twitch takes is why some streamers have already moved to Kick. The rival of the Amazon-backed streaming platform offers streamers a higher revenue percentage which makes streaming there worth it for some.