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Will Reels beat its rival TikTok?

video in tik tok

Instagram just launched a new video feature called Reels that seems to be a decent competitor to new popular social media platform for video content sharing TikTok. As a result, Facebook (FB) stock price started rising.

What is Instagram Reels?

Reels allows users to create short video clips with effects just like the Chinese video startup TikTok does. It is a new content format in a new dedicated Feed and on the Explore page. Reels will be just as similar as TikTok videos: users can like or comment on videos, click through to see what audio track was used in a specific video. The only thing is that videos of reels can last only 15 seconds, whereas TikTok allows it users create up to 1 minute videos.

TikTok polularity

TikTok massively gained its popularity having 800 million active users worldwide.

The app has been downloaded over 2 billion times on the App Store and Google Play. Now its is ranked as the top most downloaded app in Apple's iOS App Store. First, 41 percent of TikTok users were aged between 16 and 24, but as popularity grew the target audience also changed from teenagers to older population.

As I mentioned in my previous article TikTok and its parent company ByteDance are facing pressure from the United States government.  And it is perfect timing for new Instagram feature Reels. U.S. President Donald Trump announced that he would shut ban the video platform unless it will be owned by American company. India had already banned TikTok. As it was announced, Microsoft representatives are in discussion now with ByteDance, TikTok’s parent company and they plan to finish the acquisition deal by middle of September. According Microsoft data, the deal will cost between $10 billion and $30 billion.

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Instagram Reels was launched in Brazil in November 2018 before rolling out in the last few months to France, Germany, and India. In Brazil It was called “Cenas” at the time. The product was released as a test to observe user’s reactions regarding this new form of video content. Official launch of Instagram Reels includes the United States, United Kingdom, Japan, Australia, and more than 50 countries.

Facebook already has a similar story with its competitor Snapchat, to beat it Facebook launched Instagram Stories with disappearing after 24 h content.  Facebook did it successfully as popularity Snapchat started to fade.

Time will tell if these kinds of moves will work against TikTok. But it seems to me that Facebook just doing pretty well turning into more and more profitable social platform.

What do you think about new Instagram feature Reels? Share it in the comments below! If you have your question, please write it below, I would be glad to answer it or to introduce your project to my team at Astorts Group to be evaluated.

Contact Alessandro

Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.


Please write me an email with your specific case or book a Skype call, my team and I will be more than happy to help you to find the best solution for your business need or to advice and support you to start the new business venture.

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