Instagram has plans to launch a section on its app dedicated to scripted shows, music videos and more, according to a report from Techcrunch, which cited people familiar with the matter. According to the publication, Instagram has been meeting with popular online influencers and content publishers to find out how their video channels work within the Instagram app.
Instagram eventually plans to let creators and publishers make money off their videos, though it has not given specifics on how ads or revenue splits will work. TC notes that the company is not paying creators up-front for content (like Facebook did with Watch). However, the videos will each feature a swipe-up option to open a link, which creators can use to direct traffic to their websites.
This new section could mean more trouble for Snapchat, which has been in an uphill battle to stay relevant since going public last year. Part of the company’s troubles are a result of Instagram copying many of the features that made Snapchat popular, like its face filters, Stories section, and now its Discover section. Snap has also faced recent criticism for the recent redesign of its app, which caused many –including high profile celebrities like Kylie Jenner — to drop the app. Since then, Snap has started to slowly redesign its redesign, which according to Deutsche Bank, has helped the company strengthen its position among its competitors.
“Snap’s user growth looks robust in May,” Deutsche Bank analyst Lloyd Walmsley wrote in a note out to clients, which was picked up by Business Insider. “We slightly increase our second-quarter Snap daily active user and revenue estimates.”
According to Walmsley, Snap’s rollback of the unpopular redesign is a key driver of the user growth.