Instagram, which is owned by Facebook has recently just released an app that is specifically for users that intend to create videos that as long as an hour. This release comes in competition with the popular streaming service called YouTube.
The new Instagram app is called IGTV and plans to connect rising Internet stars, pets, and artists that have a lot of social media support. Due to the release, shares of Facebook stock increase by about 2.3 percent to about $202.06, which is the first time that this has occurred. Founded in 2010, the photo sharing application has over 1 billion users.
Technology companies such as YouTube, Snap, and Facebook have been very focused on trying to increase mobile video users that will be in both corporate and users brand advertising. This is in hoping that e-celebrities will begin to post videos as part of this strategy. Instagram has already partnered with Lele Pons, an online influencer that has over 25 million followers on Instagram.
Facebook has also released a different way to bring in content creators to their platform from YouTube by offering different ways to monetize the content they will create on the app. In response to this, YouTube has said they will be updating their commercialization options in the upcoming week. Currently, Instagram has no plans to share the revenue they make with the video creators. You will be able to access IGTV while using Instagram and also with its own individual app.
IGTV does not currently have an advertising feature, however, it is expected that marketers will just have endorsement deals with content creators in the meantime. This collaboration with creators has been a long time coming as their popularity has been on rise for quite some time.
Facebook bought Instagram for approximately $1 billion back in 2012. Since then, the service has growing by adding several features such as short videos and messaging. In 2016, they took a copy out of Snapchat’s “stories” feature and added users to post pictures that will disappear in 24 hours.