Mark Zuckerberg's Instagram Doubles Down On Rivalry With New 'Edits' App To Lure Creators Amid Potential TikTok Shutdown

Ananya Gairola

January 19, 2025

On Sunday, Meta Platforms, Inc.'s (NASDAQ:META) Instagram announced a new video creation app called ‘Edits’ to attract TikTok users.

What Happened: Adam Mosseri posted a video on Instagram and unveiled the ‘Edits’ app, which resembles CapCut, a popular tool among TikTok creators.

The new app will feature a dedicated tab for inspiration, another for tracking early ideas, and a significantly upgraded camera — which he used to record the announcement video.

It will offer a suite of editing tools, the ability to share drafts with friends and fellow creators, and detailed performance insights. The ‘Edits’ app is available in app stores but will not be functional until February.

See Also: Mark Zuckerberg Lauds Sheryl Sandberg Amid Blame For Meta’s DEI Program: ‘She Did Amazing Work’

On Saturday, Mosseri also announced updates to Instagram, including changes to profile photo grids and an increase in the maximum length for Reels from 90 seconds to three minutes.

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Why It Matters: The app’s launch follows a temporary shutdown of TikTok in the U.S. over the weekend. It also comes as other alternatives, like RedNote, gain popularity. Instagram has continued to adapt its features to compete with TikTok’s influence since its rise in 2020.

TikTok was restored in the U.S. after Donald Trump announced plans to delay the enforcement of a new law requiring the sale of the platform.

According to an analysis by eMarketer, TikTok’s ban could redirect billions in ad revenue, with Mark Zuckerberg’s Meta potentially capturing a substantial share.

TikTok generated $12.34 billion in U.S. advertising revenue in 2024. Should the platform face a ban, it is projected that between $6.17 billion and $8.64 billion in ad spending could shift to other platforms.

Meta could potentially secure an additional $2.46 billion to $3.38 billion in advertising revenue.

Price Action: Meta’s stock rose by 0.24% on Friday before slipping 0.0098% in after-hours trading, closing at $612.71, as per Benzinga Pro data.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Photo by rafapress on Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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