Instagram's short-video feature, Reels, has emerged as Meta's most promising business segment and a key revenue contributor, with annualized revenue exceeding $50 billion. Initially introduced as a strategic response to TikTok’s rise, Reels faced a challenging start, with early performance falling short of expectations. Meta’s internal research revealed that Instagram’s algorithmic capabilities struggled to match TikTok’s engagement power. To address this, Instagram pivoted its approach, refining its recommendation engine to prioritize viewing duration and user interests. The platform also invested heavily in AI technology and creator incentives to enhance content quality and diversity. These efforts paid off, as Reels’ algorithm optimizations fueled rapid growth. Today, Instagram users spend more time daily on Reels than on YouTube Shorts, though TikTok still dominates in engagement metrics. Meta now views connected TV (CTV) as the next frontier for Reels, launching a trial version of Instagram on Amazon Fire TV in the U.S. to challenge YouTube’s TV dominance. Additionally, Instagram is exploring interactive features tailored for TV screens, aiming to extend personalized experiences to larger displays.