This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Vine and Instagram: The Battle for Video

Stocks in this article: FB AAPL

NEW YORK ( TheStreet) -- Facebook (FB) and Instagram announcing video on Instagram had "The Death of Vine" trending on Twitter Thursday. To coin a phrase, reports of its death, are greatly exaggerated.

Vine, one of the top five apps on Apple's (AAPL) App Store, has 13 million users, and is growing at a frenetic pace. Though the company has not broken out statistics, several analytics firms have shown that usage is increasing at an exceptionally fast rate. Vine users are now producing at least 1 million video clips per day, research firm Simply Measured noted. That's faster than Instagram reached that level, and with brands, celebrities, and individual users and businesses, increasingly migrating towards the platform, that number is only expected to increase.

Vine still has a long way to go to catch up to Instagram in terms of users, and engagement. Instagram has 130 million monthly active users, ten times what Vine reportedly has.

Vine was purchased for just $30 million by Twitter, a relatively paltry sum, compared to the cost of Instagram.

I've used Vine quite a few times, and can see the utility in it for businesses. It gives users an inside access to the companies they deal with frequently, and it allows brands to get creative with their advertisements, since they only have 6 seconds to play with.

By contrast, Video on Instagram allows its users to post 15 second clips. In the Instagram tradition, the videos can also have filters over them, with Instagram announcing 13 new filters for video.

With users attention spans getting shorter and shorter, people will increasingly turn to shorter forms of entertainment. At 6 seconds, Vine's length is perfect for being able to capture the story, and show users what they want and need to see.

Instagram fired a huge shot at Vine with its announcement yesterday, make no bones about that. But as the video advertising market continues to grow, with industry analysis suggesting it's growing at a 25% annual clip, Vine will no doubt be a major player for years to come. Six seconds at a time.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs