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Roblox Unveils Short-Form Video App, Boosts Developer Payouts

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Roblox announced Friday the launch of a short-form video app and a raise in creator earnings, as the gaming platform seeks to deepen engagement and expand beyond gameplay.

The new app, called “Roblox Moments”, is now in beta. Modeled after TikTok, it will allow users to capture, edit, and share clips of gameplay on a centralized platform. The move could redirect the billions of views Roblox-related content currently receives on YouTube and other sites back into Roblox’s ecosystem, amplifying engagement among its 111.8 million daily active users.

At its developer conference, CEO David Baszucki also announced an 8.5% increase in developer cash-out rates when converting in-game currency Robux into real money. The adjustment comes as Roblox leans harder into supporting its creator economy, which generated over $1 billion for developers in the past year, with more than 100 games surpassing $1 million annually.

Roblox has been evolving into a multifunctional platform—a space for gaming, socializing, advertising, and commerce. Earlier this year, it launched new advertising formats and struck a partnership with Google to grow its ad business and create additional revenue streams for creators.

By combining short-form content with more generous payouts, Roblox is positioning itself as both a creator-friendly platform and a competitor in the broader social media and entertainment space.

Instagram to Dominate Meta’s U.S. Ad Revenue by 2025, Report Predicts

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Instagram is poised to generate over 50% of Meta Platforms’ U.S. advertising revenue in 2025, driven by its improved monetization strategies, according to research firm Emarketer.

Why It Matters

Instagram’s short-form video feature, Reels, has emerged as a key competitor to ByteDance’s TikTok and YouTube Shorts. As users increasingly engage with short videos, advertisers are shifting their focus to this format, providing Meta with an opportunity to boost revenue through more targeted ad placements.

The potential implementation of a TikTok ban in the U.S. could further accelerate Instagram’s growth. If enacted, platforms like Reels and YouTube Shorts are expected to attract advertising budgets previously allocated to TikTok, opening new revenue streams for Meta.

Key Insights

  • Video-First Platform: Jasmine Enberg, principal analyst at Emarketer, highlights that Instagram has transformed into a video-first platform. Users now dedicate nearly two-thirds of their time on Instagram to watching videos.
  • Reallocated Ad Budgets: Enberg also predicts that Instagram could capture over 20% of TikTok’s U.S. advertising dollars if the ban takes effect in 2025.

By the Numbers

  • In 2024, Instagram’s ad revenue was primarily driven by its Feed and Stories features, which accounted for 53.7% and 24.6% of its revenue, respectively.
  • By 2025, revenue generated by Reels, Explore, and Threads is expected to rise, collectively contributing 9.6% of Instagram’s total ad revenue.

Context

The shift toward video content aligns with broader trends in digital media, where short-form videos have proven highly effective in capturing audience attention. Reels’ growing popularity offers Instagram a competitive edge, particularly as regulatory uncertainties loom over TikTok.