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Instagram's 'Uncanny Ability': Tech Analyst Talks Reels, TikTok And Snapchat

Jayson Derrick

Facebook, Inc. (NASDAQ: FB) and its Instagram property launched a new service to rival TikTok called Reels and one tech pro says it will see success even if TikTok isn't banned in the future.

Reels Is 'Front And Center': Instagram is pushing Reels to ensure it's "front and center" of its app, tech analyst Pete Pachal said on Fox Business. Instagram revamped its camera so Reels is "right there" whenever the camera is opened.

There are subtle differences between Reels and TikTok although both are designed to produce really short videos that made TikTok famous, he said.

Market Share Gains: If TikTok isn't banned in the U.S., it will still lose market share to Reel, Pachal said. This was the case previously when Instagram launched Stories, a "blatant" copy of Snap Inc's (NYSE: SNAP) Snapchat app. In fact, the number of people that browse Instagram's Stories alone is likely double Snapchat's entire user base.

"Instagram has an uncanny ability to cut across cultures, age groups, demographics," he said.

Reels Security Concerns: Facebook can't promise Reels users that their safety is in better hands because the American social media company has "no credibility" in safeguarding privacy and data, Pachal said.

But what Facebook could argue is there is no "direct link" to anything China-related, unlike TikTok that is owned by a Chinese entity.

Related Links:

Here's How Microsoft Would Benefit From The TikTok Deal

Facebook Offering Substantial Financial Incentives To Bring TikTok Talent On Its 'Instagram Reels' Platform: WSJ

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