Instagram Courts TikTok Stars during Turbulent Times

Meta-owned Instagram has been wooing creators from TikTok as the China-based video-snippet sharing app's future remains uncertain in the United States.
After officially increasing the allowed length of videos and adding a new editing tool, Meta recently began letting TikTok creators earn as much as $5,000 over the course of three months for posting "Reels" to Facebook and Instagram.
The "Breakthrough Bonus" program for eligible TikTok creators is intended to "help jumpstart their growth on our apps," a Meta spokesperson told AFP.
In addition, Meta is quietly offering incentives amounting to tens of thousands of dollars a month to get creators with large TikTok audiences to switch to rival platform Reels at Instagram, according to a report Wednesday in The Information.
"Meta has been trying to take advantage of the volatility around TikTok for months, and now its efforts to court TikTok creators have gone from subtle to overt," said Emarketer analyst Jasmine Enberg.
Temporary reprieve
The campaign to get TikTok stars to switch allegiance to Reels comes as TikTok's future in the United States remains unsettled.
TikTok is facing down a US law that ordered the company to divest from its Chinese owner ByteDance or be banned in the United States.
In one of his first acts in office, President Donald Trump ordered a pause on enforcing the law that should have seen TikTok effectively made illegal in the country on Sunday.
The executive order directed his attorney general to delay the implementation of the law for 75 days.
The TikTok ban passed due to concerns that the Chinese government could exploit the app to spy on Americans or covertly influence US public opinion through data collection and content manipulation.
TikTok briefly shut down in the United States late Saturday as the law's sale deadline approached, leaving millions of dismayed users barred from the app.
That same day, Instagram boss Adam Mosseri announced that video snippets shared on Reels could now last 3 minutes instead of 90 seconds, a limit set more than two years ago.
On Sunday, Mosseri announced a new video editing application will make its debut on iPhones in February.
That comes as TikTok's flagship editing tool, CapCut, has disappeared from mobile app stores in the United States because it's owned by the same parent company, ByteDance.
"There's a lot going on right now, but no matter what happens, it's our job to provide the best possible tools for creators," Mosseri said.
Zuckerberg and Trump
Analyst Enberg believes the new features won't be enough to win over the TikTok faithful, with some likely to be irked by "blatant copycat behavior" as many are "rattled" by Meta's moves to align itself with the Trump administration.
Meta chief Mark Zuckerberg has dined with Trump since his victory, openly praised the president and appointed Trump allies to positions of influence at the tech firm.
Meta also recently ended programs to prevent disinformation and vitriol on its platform, efforts long criticized by political conservatives.
While Instagram is considered the most likely alternative to TikTok, Chinese application named Xiaohongshu -- nicknamed "Red Note" -- is a preferred option for many in the United States.
Even though the app is in Mandarin, many see it as a way of thumbing their noses at Meta and US politicians.
"The potential of a cash bonus is going to be hard for TikTok creators to resist, regardless of how they feel about Meta," said analyst Enberg.
As for users, they will follow where their beloved creators lead, and there is no better way to get them to Instagram than money, Enberg reasoned.

Volkswagen will need to make additional investments in the United States to hit its target of doubling market share there, its CFO Arno Antlitz said on the sidelines of the World Economic Forum annual meeting in Davos on Thursday.

"We need additional initiatives ... to double market share, you have to be even more local," Antlitz said when asked whether Volkswagen plans to expand its plant in Chattanooga, Tennessee.

"We are strong in Europe, but we need to do more 'value-added' in the US," added Antlitz, listing research and development as a potential area for investment.

"But we have to decide on the project first," he told the Reuters Global Markets Forum, declining to give further details.

Volkswagen has previously said it aimed to hit 10% market share in the US, a goal investors and analysts are sceptical the carmaker can achieve in a crowded market. It currently has around 4% market share, according to Reuters calculations.

The CFO declined to comment on how the carmaker would react if US President Donald Trump follows through on threats to impose tariffs on imports from Europe, Mexico and Canada, saying it was "too early".

Volkswagen's global production chain puts the carmaker directly in the line of fire for Trump's tariffs. Its Audi and Porsche brands have no US manufacturing base, its VW passenger car brand's US sales consist mainly of imports from its Mexican plant, and its battery cell plant under construction in Canada was set to deliver batteries to the United States.

The German carmaker plans to bring in range extenders, small combustion engines which charge an EV battery to extend its range, into more of its models, Antlitz said, in an attempt to appeal to customers who are hesitant to make the switch to EVs.

Instagram Courts TikTok Stars during Turbulent Times