Instagram testing long-form videos to compete with YouTube, TikTok

What happened

Instagram launched a long-form video platform called "Features" that lets creators and podcasters make 90-minute videos, showing a short clip with an option to watch the full video, as Meta seeks to compete with YouTube, TikTok, Netflix and Disney.

Confirmed

Global impact / market context

Longer videos keep viewers on Instagram for more time, which can support advertising revenue and give Meta a way to attract creators now paid by YouTube. Creators are not paid at first, so Meta limits its costs while testing demand.

Analyst inference

The move puts Meta in direct competition with YouTube owner Alphabet and with Netflix and Disney for viewer attention. Success depends on whether creators post long videos without direct pay, which could pressure rivals' share of viewing time.

Analyst inference

What to watch

1. Instagram is working on several different deals with early creators, though Features creators will not initially be compensated for content, similar to the compensation framework on YouTube. Confirmed
2. Watch whether Instagram adds a formal payment program for Features creators, since the article says it is working on deals but does not set out terms or timing. Proposed
3. Track whether creators bring existing advertising or branded content deals to Features, because that could determine whether long videos attract enough content to challenge YouTube. Analyst inference

Evidence

• seekingalpha.com