The competition among platforms for dominance in short-form video content remains intense, as TikTok, Instagram, and YouTube vie for viewer attention. Recent insights from the Video Streaming App Report reveal that TikTok and Instagram Reels are nearly equal in user engagement, with each boasting approximately 1.5 billion active users monthly.
Initially, TikTok set the stage for short-form video, experiencing a surge in popularity during the pandemic, which prompted Instagram, YouTube, Snapchat, LinkedIn, and others to introduce their variations of the genre, although some of these attempts have since faltered.
The principal challengers to TikTok are YouTube and Instagram Reels. YouTube Shorts, embedded within the YouTube platform, has reached two billion users; however, the exact number of users actively engaging with Shorts like they do with TikTok and Reels remains uncertain.
Another player in the short-form video arena is Snapchat Spotlight, yet due to its comparatively smaller user base, it doesn't compete at the same level as the leading three platforms, claiming about 350 million active users.
Looking ahead, Instagram Reels has a strategic advantage in the Indian market, where TikTok is not accessible. YouTube could also see a rise in user numbers if it launches a standalone Shorts app, although there are concerns about potentially fragmenting its existing audience.
While TikTok is experiencing rapid growth in developed countries, it faces looming restrictions in the United States and elsewhere due to increasing tensions with China. In contrast, YouTube and Instagram are already prohibited in China and thus do not contend with such issues.
For YouTube and Instagram, there were initial concerns that short-form video might detract from their profitable advertising markets—YouTube’s longer videos and Instagram’s Stories. However, interest from advertisers in short-form video content has alleviated these worries.
In 2023, TikTok generated around $16 billion in revenue, predominantly through advertising, while Instagram Reels approached $20 billion. YouTube has not disclosed its ad revenue breakdown by type, but it is anticipated that Shorts constitutes a significant multi-billion dollar segment.
