Meta's Reels has turned from a TikTok imitation into a major revenue generator, projected to earn $50 billion in the next year. Instagram users now spend an average of 27 minutes daily on Reels, significantly increasing engagement compared to previous years. Meta aims to expand Reels to more platforms by 2026.

Instagram is reportedly developing a new video editing tool that resembles CapCut, a popular app by ByteDance, in an effort to compete with TikTok's features. This move aligns with Meta's broader strategy to enhance its offerings and maintain user engagement on its platforms.

In an ongoing antitrust trial, Meta Platforms is leveraging TikTok as a key argument to counter claims of monopolization by the Federal Trade Commission. The FTC aims to prove that Meta's dominance in social media has not diminished, while Meta contends that TikTok's emergence as a competitor alters the landscape of social media and entertainment.

New court filings reveal that Meta executives recognized Facebook's declining competitiveness against TikTok, leading to discussions about the platform's strategies to regain user engagement and market relevance. The internal documents shed light on the company's acknowledgment of the challenges posed by TikTok's rapid growth and its impact on Facebook's user base.

YouTube is currently the leading streaming service in the U.S., surpassing traditional TV networks in viewership. In response, TikTok and Instagram's parent company Meta are planning to launch their own TV apps focused on short-form content, although they may struggle to compete with YouTube's established long-form offerings. Both companies are exploring strategies to attract older viewers and improve production quality for their TV content.