Attention YouTube: Instagram Expands its Horizons with 90-Minute Video Capabilities

If given the option to gain one million followers on any social media platform, which would you select? The top choice is YouTube, especially if you aim to monetize your content. However, a recent update from Instagram could challenge YouTube’s established dominance in terms of earnings for creators, depending on how Instagram proceeds.

On Monday, Instagram revealed that it’s trialing a new video feature called “Features,” allowing creators to upload videos of up to 90 minutes. This marks a significant departure for Instagram, which has mainly focused on short-form video content in recent years, a trend that has been widespread across various platforms.

While short, vertical video has become a hallmark of online content in the 2020s, the revenue these creators earn from platforms like Instagram is minimal. Although Instagram, owned by Meta, provides monetization options like subscriptions, it doesn’t typically compensate creators based on the number of views their videos receive.

Instagram head Adam Mosseri discussed the earning avenues available to creators during an interview focused on the influence of creators in the economy. He explained that creators can receive income through the platform, from fans, or from brand partnerships. Currently, brand collaborations represent the primary income source for creators on Instagram, despite the platform operating at a loss in terms of monetization investments.

In contrast, YouTube has a more transparent compensation method through advertisements. Creators who join YouTube’s Partner Program receive 55% of the ad revenue generated from their content, a model that has resulted in over $100 billion paid to creators and media entities in the past four years alone.

Neither Instagram nor TikTok has successfully mimicked YouTube’s revenue model for short videos, presenting challenges for monetization given the limited advertising space. Many creators view their Instagram and TikTok channels more as promotional outlets for their YouTube content rather than substantial income sources.

With the new Features, Instagram is looking to promote longer videos, reminiscent of its previous IGTV initiative from eight years ago. It’s plausible that Meta, which relies heavily on advertising revenues, could integrate ads into these long videos as well.

Should Meta implement advertisements, Instagram might finally stand a chance to rival the YouTube Partner Program.

While a Meta representative indicated that it’s early to disclose a concrete monetization strategy, they mentioned exploring options for creators to earn through brands, fans, and Instagram itself, alongside performance incentives. The aim is to cultivate opportunities for creators to share narratives and reach broader audiences.

Although this response lacks immediate clarity, it certainly leaves the door open.

In a video announcement, Mosseri addressed the shift towards long-form content after previously discontinuing IGTV. He acknowledged that he had reservations about long videos on Instagram due to the popularity of shorter content like Reels but was ultimately persuaded by Instagram’s VP of Product, Tessa Lyons, to reconsider.

Lyons emphasized that while Reels will continue to be a vital part of Instagram, users should have the opportunity to delve deeper into the content created by their favorite creators.

Essentially, Instagram aims to retain users by providing both short and long video content, preventing them from switching to YouTube. The platform is currently testing a feature named “Clips as Reels,” which enables creators to transform segments of their long-form content into Reels that link to the full video. Viewers can also save these long videos to their Instagram app on TVs.

Currently examining “Features” and “Clips as Reels” in Brazil, Instagram plans to extend its testing to the U.S. Furthermore, improvements are being made to the discovery features for Live videos, along with the creation of a hub for episodic Reels, allowing creators to compile a series of connected Reels akin to TikTok’s playlist feature.

Mosseri noted that the team is eager to facilitate a harmonious relationship between short and long video formats, aiming to enhance user experience on both mobile and TV applications. Though it may take some time to perfect this integration, there is optimism about its potential.