In 2018, Adam Mosseri took the helm as CEO of Instagram at a pivotal moment. The Meta-owned platform faced stagnating user growth and declining engagement, largely due to the rise of a new short-form video app: TikTok.
By 2019, Instagram estimated that 23% of the decline in U.S. user time spent on the app was directly attributed to TikTok. This trend worsened during the COVID-19 pandemic, as TikTok’s user base surged. In an internal email from March 2020, Mosseri issued a clear warning: “We need to adapt quickly, or we’ll be slowly left behind.”
Fast forward to today, and that moment is resurfacing in a Washington courtroom as Mosseri testifies in the Federal Trade Commission’s (FTC) antitrust case against Meta. His testimony sheds light on the fierce competition Instagram faces, especially from TikTok, and how the platform has been forced to evolve.
Social Network or Entertainment Platform?
The FTC’s case revolves around whether Meta has monopolized the “personal social networking services” market. A key question in this trial is whether Instagram can still be classified as a social networking platform, considering its increasing focus on entertainment content. While TikTok and YouTube lean heavily into entertainment, Instagram's original goal of connecting friends is pivotal to its market classification.
Mosseri emphasized in court that despite Instagram’s growing entertainment content, "friend connections are still a vital part of the experience." He clarified that Instagram intentionally avoids long-form video content because it doesn’t foster sharing among friends. He firmly stated, "I still believe friends are at the core of Instagram," although he admitted that friend-related content now accounts for a smaller share of engagement compared to its entertainment content.
Interestingly, this sentiment echoes a 2018 internal email from Meta CEO Mark Zuckerberg, who warned that Instagram could embrace entertainment, but "it can never lose focus on friends, or it will stop being a true social product."
From Defensive Moves to Strategic Offense
How did Instagram respond to this challenge? One key weapon was Reels.
Under Mosseri’s leadership, Instagram doubled down on its short-form video format. The company strengthened its AI recommendation systems to boost engagement and personalization, which helped regain users' attention. Reels became a direct competitor to TikTok, positioning Instagram as a dominant force in the short-form video space.
At the same time, TikTok also began evolving. Mosseri testified that TikTok is no longer just a passive content-watching platform. It has started integrating social features like friend-based video feeds. Although a TikTok executive stated that only 1% of views come from this social feed, the strategic intent is clear: the line between social networking and entertainment is blurring fast.
This race isn’t just about video content — it’s about owning the social graph.
Instagram and Meta: A Complicated Partnership
Mosseri’s testimony also bridges contrasting narratives from Meta CEO Mark Zuckerberg and Instagram co-founder Kevin Systrom. Zuckerberg has claimed that Facebook empowered Instagram’s growth, while Systrom argues that Facebook diverted resources away from Instagram over time.
As Instagram’s successor, Mosseri offered a more balanced perspective: he acknowledged that Meta’s resources helped Instagram integrate technically and scale faster. However, he also admitted that resource allocation shifted during different phases.
This raises a broader question: Did Meta accelerate Instagram’s potential, or did it acquire and control a rising competitor?
The Competition is Just Beginning
Instagram’s transformation is far from over. With TikTok’s relentless growth, Meta’s evolving cross-platform strategy, and shifting user behaviors, the battle for user attention is intensifying.
Ultimately, platforms must do more than capture attention — they need to foster real interactions. Likes, shares, comments, and messages are still the heartbeat of social networks.
Because, at the end of the day, social media isn’t just about what you’re watching, but who you’re watching it with.
The Changing Landscape of Social Media and Payments
As platforms like Instagram and TikTok continue to evolve, they not only shape the digital entertainment landscape but also transform how creators monetize their content. In this changing environment, payment services like Buvei are emerging as essential tools for creators, helping them navigate the complex landscape of online revenue.
Buvei, a virtual credit card platform, provides creators and global users with secure, flexible payment solutions. As Instagram, TikTok, and other platforms ramp up their monetization models, services like Buvei are becoming financial bridges between creators and the platforms they rely on. Buvei’s secure virtual cards allow for seamless payments, helping creators receive earnings from platforms like Instagram and TikTok with ease and security.
In a world where social networks are increasingly converging with entertainment and commerce, those who can build a seamless ecosystem of engagement, monetization, and payments will define the next era of social media.
Call to Action
As the social media landscape shifts, Buvei stands ready to help creators manage their earnings securely and efficiently. Learn more about how Buvei can help streamline your financial operations today and join the future of digital payments.
