Instagram may soon launch Reels as a separate app, according to a report by The Information.

According to the report, the company’s head, Adam Mosseri, reportedly informed employees about the plan this week. If this move happens, Reels will break away from Instagram and function as an independent short-video app similar to TikTok. The app will have a full-screen, scrolling video experience.

This isn’t the first time Meta has tried to compete with TikTok. In 2018, the company launched Lasso, a TikTok-like app that was eventually shut down in 2020. However, Reels is already deeply integrated into Instagram and has become one of its fastest-growing features, making this attempt different.

TikTok’s uncertain future opens doors for competitors

Meta’s move comes as TikTok’s future in the U.S. remains unclear. The app has faced regulatory scrutiny for years, with U.S. lawmakers threatening to ban it over data privacy concerns. 

Social media platforms are capitalizing on this uncertainty to build their user base. For instance, Tumblr recently launched Tumblr TV, a TikTok-style feature to attract younger audiences. 

Meta is also making a strong push to compete directly with TikTok, aiming to attract users to its platform. If it launches Reels as a standalone app, Meta could position itself as the leading alternative in the short video market. 

TikTok’s challenge is already pushing advertisers and marketers to explore other short-form video platforms like Meta. Previous predictions say brands would likely shift their ad budgets to alternatives like Instagram Reels, YouTube Shorts, and Snapchat Spotlight if TikTok were banned. 

However, TikTok doesn’t look to be backing down. The app has become available for download again on the Apple App Store and Google Play Store and is expanding its reach beyond entertainment. TikTok Shop recently surpassed e-commerce competitors like Shein and Temu in U.S. sales growth.

Will separating Reels help or hurt Instagram?

Reels have been a key driver of Instagram’s engagement, with users now spending two-thirds of their time watching short videos rather than traditional posts. The feature has also contributed to Instagram’s revenue growth, helping the platform compete with Facebook as Meta’s top ad platform.

Meta has also leaned into AI-driven content recommendations, with more than 50% of Instagram’s feed now filled with algorithmically suggested posts, many of which are Reels. This shift has significantly increased video consumption on the platform.

But if Reels becomes an independent app, there’s a risk that it could impact Instagram’s growth. Marketers and brands have already adjusted their strategies to include Reels within Instagram’s ecosystem. Moving Reels to a separate app could force advertisers to rethink their approach, especially if Instagram’s engagement declines due to the separation.

However, Meta’s plan to separate Reels aligns with its strategy to take on TikTok. The initiative, internally called "Project Ray," focuses on improving content recommendations and promoting longer videos such as three-minute-long Reels.

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