What's Happening?
Instagram is currently testing a new video format called 'Features' in the U.S., allowing for horizontal videos up to 90 minutes long. This initiative, announced by Instagram head Adam Mosseri and product chief Tessa Lyons, is seen as Instagram's latest
attempt to compete with YouTube in the long-form video space. The test is being conducted with a small group of U.S. creators, including podcast host Emma Grede and beauty creator Monet McMichael. A key point of contention is that Instagram does not currently plan to share advertising revenue with creators for content posted on Features, a significant departure from YouTube's model, which offers creators 55% of ad revenue. This lack of immediate monetization has led to pushback from creators, who argue that producing long-form content requires reliable ad revenue to be sustainable. Instagram previously launched IGTV in 2018, which offered a 55% revenue share, but it was later folded into the main app and effectively discontinued.
Why It's Important?
The introduction of 'Features' without an ad revenue-sharing model could significantly impact U.S. content creators and the broader digital media landscape. For creators who rely on platform ad revenue, Instagram's new format offers little financial incentive, potentially limiting its adoption among those who produce ad-funded long-form content. This contrasts sharply with YouTube, where a 55% ad revenue share is a major draw for creators. The move suggests Instagram might be positioning 'Features' as a distribution tool for content already monetized elsewhere, such as sponsored podcasts, rather than a primary income source for creators. This strategy could lead to a bifurcation in the creator economy, where creators with external funding might utilize 'Features' for reach, while those dependent on platform ad revenue will likely continue to prioritize platforms like YouTube. The success or failure of 'Features' will indicate whether reach alone is sufficient to attract long-form content, or if direct monetization is a prerequisite for sustained creator engagement.
What's Next?
Instagram plans to expand 'Features' to all U.S. users by the end of 2026 or early 2027. Before this wider rollout, key indicators to watch include the posting frequency of current test creators, particularly those with sponsor-funded shows, to gauge if reach alone is a sufficient motivator. Another crucial development will be the integration of 'Features' with Instagram's TV app, which has recently expanded to Apple TV in the U.S., as long-form video consumption increasingly shifts to television screens. Instagram has indicated that it is exploring options for creator compensation, suggesting that a revenue-sharing model could be introduced in the future. The company's decision on monetization will likely determine the format's long-term viability and its ability to attract a broader range of long-form content creators away from established platforms like YouTube.
Beyond the Headlines
The launch of 'Features' highlights a broader strategic challenge for social media platforms: how to attract and retain creators for new content formats while balancing platform profitability and user experience. Instagram's cautious approach to ad revenue sharing, especially given the past experience with IGTV, suggests a learning curve in understanding the economics of long-form video. This move could also signal a shift in how platforms view creator value, potentially prioritizing content that drives engagement and user time on the app, even if direct monetization for creators is deferred. The ethical implications of expecting creators to produce high-quality, time-intensive content without immediate financial compensation could also become a point of contention, potentially leading to debates about fair compensation models in the evolving digital content ecosystem. The success of 'Features' will ultimately depend on Instagram's ability to demonstrate tangible value to creators, whether through increased reach, future monetization, or other benefits.
