Creators and influencers on edge about Meta’s reported Reels spin-off

Although Meta allowed Instagram users to bring their followers with them to Threads when it launched the microblogging platform in 2023, it’s unclear whether the company would take a similar approach for Reels. Furthermore, creators and influencer marketers believe that forcing users to download a new video app could deter some of them from watching creators’ videos. In the case of a spin-off, these factors could reduce the reach of influencers, some of whom have hundreds of thousands of followers, who use Reels as brand partnership inventory.

Reels continue to grow year-over-year, according to Meta CEO Mark Zuckerberg during the company’s Jan. 29 Q4 2024 earnings call, although he did not share specific growth figures.

“I’m in a contract right now for a brand that’s doing stuff across my YouTube, podcast and social channels,” said journalist and creator Taylor Lorenz, referring to an influencer marketing agreement with the data privacy firm DeleteMe. “We would have to renegotiate, because Reels are part of that contract.” Lorenz didn’t say how much the contract was worth.

The wide reach of Instagram Reels is a key factor behind brands’ interest in the format, meaning any reduction in viewership that came alongside a potential Reels spin-off would represent an opportunity for brands to renegotiate their agreements with creators, according to three influencer marketers who spoke to Digiday for this article.

“Ultimately, brands are paying for people to see the content and if reach fails, everyone will need to get around the negotiating table to find a new way to access communities and audiences,” said Tom Sweeney, global vp of influencer marketing for U.K. media agency Brainlabs, who said that he was personally skeptical that the rumored spin-off would ultimately take place.

Although a Reels spin-off could risk burning creators by reducing their viewership metrics, this reduction would be damaging to Meta, too. If the company does separate Reels, influencer marketers believe Meta will take steps to ensure that the move hurts creators’ viewership and follower counts as little as possible.

“Of course, there’s going to be renegotiations, changes to those agreements and things of that nature — but it’s also counterintuitive, from a Meta perspective, if they were to pursue something like that,” said Joe Gagliese, the co-CEO of influencer marketing agency and talent management firm Viral Nation. “Meta doesn’t want the creators to have to rebuild an audience on a new platform.”

The details of how and why Instagram brand partnership contracts might need to be changed depend on how those contracts were drafted. If a contract requires content to be posted on Instagram, for example, a Reels spin-off could raise questions about whether posts on the new app would still qualify. Furthermore, if the agreement is tied to specific Instagram features, such as “Reels posts on Instagram,” splitting off Reels could create potential compliance issues, per Jason Chung, the head of gaming, esports and media practice at the law firm Zuber Lawler LLP.  

However, Chung was quick to reassure creators. “These contracts often include flexibility, whether through amendment provisions or good-faith negotiation clauses,” Chung said. “Most brands and platforms have strong incentives to maintain positive relationships with influencers, so they may be willing to adjust expectations rather than enforce a strict interpretation that could harm both sides.”

Despite concerns over potential contract issues, many creators are in favor of Reels becoming a standalone short-form video app. Creator Morgan “Modelmorg” Pope, for example, told Digiday that she has reduced her activity on Instagram, but that a return to the platform’s photo-posting roots would encourage her to start posting more frequently. Although Instagram’s total user base continues to grow year-over-year, the platform’s user engagement dropped by 28 percent between 2023 and 2024, according to a report by the data platform Socialinsider.

“There’s a lot of people that I know that have Instagram and they only post Reels,” Pope said. “Everyone is just trying to get the best out of social media by getting the most amount of views — that’s all people really care about. People have lost the idea of the quality of Instagram, which is why I stopped being on Instagram.”

Other influencer marketers also feel positively about the potential change, noting that Reels typically drive more user activity than other types of Instagram content. With Donald Trump’s extension of the U.S. TikTok ban slated to end on April 5, a dedicated Reels video app could be more inviting than a mixed-media photo and video app to TikTok creators looking for their new home.

“We’re seeing the majority of engagement happen on Reels,” said Nicole Penn, the president and CEO of the marketing agency The EGC Group. “So, it could just be a way to segment it, focus it as its own app, and really perfect its algorithm to compete against TikTok.”