Instagram could launch standalone Reels app amid TikTok’s uncertain future

The news: Instagram is considering launching Reels as a separate short-form video app to take advantage of ByteDance-owned TikTok’s uncertain future, per The Information, citing an individual who overheard the remarks.

The app is reportedly a part of Project Ray, a Meta initiative designed to help Instagram compete against TikTok that also includes improving how Instagram content is recommended and offering more three-minute-long Reels to US users.

The move comes shortly after Instagram chief Adam Mosseri announced that the company will launch a secondary app in March called Edits—an app that is noticeably similar to TikTok’s video editing sister app CapCut.

Zooming out: Launching a standalone app with essentially the same functionalities of TikTok is another attempt to convince Instagram users, creators, and brands to stick with Meta platforms, years after the company launched the failed Lasso app in 2018.

While TikTok’s future remains uncertain after President Donald Trump granted the platform a 75-day extension in January, Instagram could get a big boost if the app is completely banned in the US. Influencers overwhelmingly agree that Meta platforms like Instagram and Facebook will be the next big player in short-form video content if TikTok exits the market.

• Reels are Meta’s fastest-growing content type with over 200 billion cumulative views daily, per a Meta report. A standalone app could potentially increase that number, cementing Meta as a short-form video leader.
• Meta does have the largest share of social network users, but we forecast 117.9 million US consumers will use TikTok in 2025—more than one-third of the population. Though there is likely significant crossover between Instagram and TikTok users, a separate Reels app would be an attempt to lure millions of users away from Meta’s biggest short-form media competitor.

Our take: A standalone app could get more people using Reels, but Meta will have to find a way to convince people to download the platform, especially if Reels are still integrated into Instagram, where its core audience lies.

Without something special, it’s unlikely that Reels will be viewed as a go-to platform for short-form videos like TikTok is, bar a complete ban in the US that would force users to pick an alternative, but that is seeming more and more unlikely as various buyers express interest.