Meta is exploring the possibility of launching Instagram Reels as a standalone app, according to an anonymous source who overheard Instagram head Adam Mosseri discussing the project with staff.

The initiative, reportedly code-named Project Ray, aims to enhance content recommendations and feature more three-minute videos, particularly focusing on both new and existing US users. This move comes after Meta's recent launch of Edits, a video editing app designed to compete with ByteDance's CapCut.

The potential spinoff could address user complaints about Instagram becoming overcrowded with various features like photos, Reels, and Stories. By separating Reels into its own app, Instagram could potentially return to its photo-sharing roots while maintaining a dedicated platform for short-form video content.

This isn't Meta's first attempt at a standalone short-form video platform. In 2018, the company launched Lasso, which was discontinued after two years when Instagram shifted its focus to Reels.

To boost Reels' popularity, Instagram has been offering significant financial incentives to creators, with reported bonuses ranging from $10,000 to $50,000 for exclusive content. This strategy appears to be working, as recent data shows TikTok experiencing a 5% decline in users during Q4 2024, while platforms like YouTube Shorts and Instagram Reels continue to gain traction among younger demographics.

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