Instagram Reels TV App Launch Ignites Battle for CTV Advertising Market

As the global Connected TV (CTV) advertising market grows faster than social video advertising, major social media platforms led by Meta's Instagram are launching TV apps to capture the living room screen. With short-form content consumption shifting from mobile to TV, the convergence of streaming, AI, and the creator economy has also emerged as a key topic at CES 2025. This presents significant strategic implications for the K-content industry seeking to expand in the global FAST (Free Ad-Supported Streaming TV) market.

📌 Related Session at CES 2025

At CES 2025's 'Digital Hollywood: Entertainment, Tech & Brands' track, the session 'The Leadership Roundtable: Hollywood, Technology & Advertising' will be held on Monday, January 6 at 9:00 AM at the ARIA Hotel. The session will discuss how the combination of streaming, AI, and the creator economy, along with innovation in devices, platforms, and consumer engagement, is wholly transforming the entertainment industry.

The Leadership Roundtable: Hollywood, Technology & Advertising

CES® is the most powerful tech event in the world — the proving ground for breakthrough technologies and global innovators. This is where brands get business done, meet new partners and where the industry’s sharpest minds take the stage to unveil their latest releases and boldest breakthroughs. Owne…

Venue: ARIA, Level 1, Joshua 9 | Keywords: AI, XR & Spatial Computing, Streaming, Content & Entertainment

Instagram Launches Reels TV App Pilot

According to U.S. media outlet Axios, Instagram announced a pilot for a TV app to watch its short-form video service 'Reels' on Tuesday. The app is currently only available on Amazon Fire TV devices in the U.S.

The TV app can include up to five Instagram accounts, and users can also set up a new account exclusively for TV viewing. Reels play automatically with like and comment features available, and videos are sorted into channels such as 'For You,' 'Popular with Friends,' 'New Music,' and 'Sports Highlights.'

Instagram head Adam Mosseri hinted at this move in October at the Bloomberg Screentime Conference, stating, "If behavior and the consumption of these platforms is moving to TV, then we need to move to TV too."

Major Platforms' TV Market Entry Status

Instagram is not alone. Major social media platforms are racing to enter the TV market.

YouTube has been strengthening its TV platform for years in response to growing TV watch time, while Pinterest has signaled a full-scale push into the living room market through its acquisition of a CTV advertising platform.

Meanwhile, TikTok discontinued its TV app service due to U.S. ban law issues, and X's TV app is currently not functional on major smart TVs including Samsung and LG, according to Axios testing.

Rapid Growth of CTV & FAST Advertising Market

The core driver behind these moves is advertising revenue. CTV ad spending is growing faster than social video advertising, emerging as a new revenue stream for social media companies.

According to eMarketer, CTV and social media advertising growth rates are expected to converge by 2028. While social media advertising still commands a larger share of the U.S. ad market than CTV, not all social media ad spend is video-specific.

Separate data from PwC shows that video-focused ad spending on social media is growing slower than CTV in the U.S.

Instagram's Differentiation Strategy: Communal Experience & Brand Safety

Instagram pitches its new TV app as a way to make the platform more communal by enjoying social videos with friends in person. This comes as spending time on devices and social media has been linked to loneliness and depression.

The TV app also follows Instagram's new PG-13 rating system, signaling to parents and advertisers that it aims to be a family-friendly and brand-safe experience. This strategy aims to address advertisers' brand safety concerns and enhance competitiveness in the TV advertising market.

Implications for the Korean Content Industry

This social media push into TV aligns with the rapid growth of the FAST market, opening new opportunities for K-content.

First, diversification of distribution channels is essential

As social media platforms expand to TV, content distribution channels are becoming multi-layered. Korean Wave content including K-drama and K-pop must extend distribution strategies beyond traditional OTT platforms to include FAST channels and social media TV apps.

Second, active engagement with ad-supported free models (AVOD/FAST) is required

As subscription fatigue intensifies, ad-supported free streaming is emerging as the new mainstream. Korean broadcasters and content companies need to actively develop advertising revenue models through partnerships with global FAST platforms.

Third, short-form and long-form content integration strategies become crucial

Instagram Reels' TV launch demonstrates that short-form content is no longer confined to mobile. A funnel strategy that optimizes K-content highlight clips and behind-the-scenes videos for TV viewing and connects them to full-length content consumption could prove effective.

As global platform competition for the living room TV screen intensifies, the position K-content secures in this new battleground will be a key variable determining the future sustainability of the Korean Wave.

Sources & References

Original: Axios, "Social media moves into the living room" (Kerry Flynn, Sara Fischer)

URL: https://www.axios.com/2025/01/14/instagram-reels-tv-app-social-media

CES 2025 Session: "The Leadership Roundtable: Hollywood, Technology & Advertising" (Digital Hollywood Track, Jan 6)

Data Sources: eMarketer, PwC