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Instagram to Directly Compete with YouTube, Launches IGTV

Instagram to Directly Compete with YouTube, Launches IGTV

United States: In an attempt to compete directly with YouTube, Facebook's Instagram app has launched IGTV, which will increase Instagram's video time limit from one minute to 10 minutes for most users. Accounts with large audiences will be able to distribute programs lasting up to an hour.

Video is available through Instagram or a new app called IGTV. It will give Facebook more opportunities to sell advertising. The new feature seems to be inspired by YouTube and is being dubbed as a cool place for the younger population to share and view content.

Instagram CEO, in an interview claimed that he hopes IGTV will emerge as a hub of creativity for relative unknowns who turn into internet sensations with avid followings among teens and young adults. That is what's already happening on YouTube, which has become the world's most popular video outlet since Google bought it for $1.76 billion nearly 12 years ago. It now boasts 1.8 billion users.

Instagram, which Facebook bought for $1 billion six years ago, recently crossed 1 billion users, up from 800 million users nine months ago.

Besides giving Instagram another potential drawing card, longer clips are more conducive for video ads lasting from 30 seconds to one minute. Instagram doesn't currently allow video ads, but eventually will. When the ads come, Instagram intends to share revenue with the videos' creators - just as YouTube already does. The ads are likely to aid Facebook to sustain its revenue growth. Total spending on online video ads in the U.S. is expected to rise from nearly $18 billion this year to $27 billion in 2021.

IGTV's programming format will consist exclusively of vertical video designed to fill the entire screen of smartphones. By contrast, most YouTube videos fill only a portion of the screen unless the phone is tilted horizontally.

In IGTV’s dedicated app or its in-Instagram experience, viewers will be able to swipe through a variety of longer-form videos, or swipe up to visit a Browse tab of personally recommended videos, popular videos, creators they’re following and the option to continue watching previously started videos. Users will also get callouts from the IGTV button alerting them to new content.

According to TechSci Research, the IGTV launched by Instagram is anticipated to drive the OTT market in the coming years. Growing use for online media content over various platforms like smart devices, rapidly increasing smartphone & tablet user base, growing demand for instant messaging services, and internet-based voice and video calling services is likely to drive the OTT market in the next couple of years. Moreover, growing customer inclination towards online audio and videos, increasing adoption of cloud computing, coupled with expanding online gaming user base is expected to further propel growth in global OTT market in the future.

According to the recently published report by TechSci Research, “Global Over The Top (OTT) Market, By Content Type (VoIP, Text & Media, Video), By Platform, By Deployment Model, By Service Type, By User Type, By Revenue Model, By End User, By Region, Competition Forecast and Opportunities, 2011-2021”, global OTT market is projected to surpass $64.9 billion by 2021, on account of growing trend of Bring Your Own Device (BYOD), rising adoption of cloud computing, expanding market for Internet of Things (IoT). Netflix accounted for the highest market share in global OTT market in 2015, and the company is anticipated to maintain its dominance in the coming years on account of growing video streaming business and rising number of partnerships of Netflix with various local content providers, globally. In 2015, media & entertainment sector was the largest end-user of OTT market. Increasing demand for online content such as online publishing, Internet TV, online advertising, and online short & long videos, is anticipated to fuel exchange of online content in media & entertainment sector, which is expected to translate into media & entertainment sector maintaining its dominance in the global OTT market during the forecast period.

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Relevant Reports

Global Over The Top (OTT) Market By Content Type (VoIP, Text & Media, Video), By Platform, By Deployment Model, By Service Type, By User Type, By Revenue Model, By End User, By Region, Competition Forecast and Opportunities, 2011-2021

ICT | Sep, 2016

Improving broadband network infrastructure, rising smart devices and internet penetration, opening up of new revenue streams for content providers, coupled with growing technological advancements to drive global over the top market through 2021

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