Instagram has been a huge success for both Kevin Systrom’s original crew and Facebook, with the photo sharing platform hitting over 100 million active users on both iOS and Android devices. Perhaps the most reliving news for Facebook is the platform continues to grow despite questions on the new ownership and hugely negative feedback about a new advertising strategy.
However, the app may be getting a huge update in the form of video options, to counter the rising popularity of apps like Vine, Cinemagram and Viddy. In particular Vine has been a huge success for owners Twitter, who have claimed more people share Vine’s on the microblog than Instagram photos, even though the short video sharing service has only 20 million users.
Instagram will still remain loyal to the millions of fans that take most of their best snaps and stick it on the photo sharing site, but with this expansion we are likely to see an influx of new short videos, reportedly ranging from 5 to 10 seconds, cropping up on the social feed.
The question is how will both of these work in harmony together and can they actually do this without screwing up the original design of the website. Video on Vine works by simply scrolling onto the video, but what if someone only wants to check photos, will they have options to make sure only photos or only videos show and will they be able to keep photo sharing on Instagram successful.
Still Needing Revenue
Instagram is still a big sponge on Facebook, which is currently estimating about $2 billion a year revenue from advertisement. Instagram currently has none and one recent update to privacy for advertisements caused huge backlash from the community, causing many people to leave the service, although the numbers are back in the green.
However, the photo sharing site cannot go on free and without ads forever, in fact, Instagram’s databases and staff could be hogging up a huge part of Facebook’s revenue. There are lucrative opportunities with advertisement, including sponsored channels, promoted photos, promoted hashtags and with video there could be short video ads and media ads.
Instagram has denied pushing advertisement is one of their core goals, but the server demand and staff wage is not going to run on a free-to-use no ads service for long. Both Facebook and Instagram know this and they will have to implement something worldwide for the 100 million fans.
Vine’s Big Community
Vine has already grown into the dominate short video sharing app, it does not directly compete with YouTube and other Internet media content providers, although Google could easily design a system where YouTube could become a place for short second videos.
Instagram will have to implement some pretty amazing features to the video service to make it a worthwhile jump from Vine. Some big Vine users even promote brands and think about sketches for their Vine’s, before posting them out to their many followers.
It is this kind of integration with users Twitter was hoping for with Vine, currently their most popular subsidiary. While Instagram video may open a door, we do not necessarily think it will shut down Vine.