Instagram could have just dropped the sneakiest move of 2016 by launching a clone of one of Snapchat's hallmark features, Snapchat Stories. In fact they've basically lifted the concept and even kept the same name, Instagram Stories.
There is a key reason that this will flag a big "!" with Snapchat. Snapchat's Stories function was their key area for revenue generation, and due to the fact they don't have a timeline this is where they placed their paid advertisements. Now Instagram already have a revenue stream, their problem isn't a revenue generation model, their problem is that engagement rate is falling, as well as time spent on the application.
Of course, there is always the option that Instagram will use Stories as a secondary revenue stream but my guess is that they'll keep it 'ad-free' in an attempt to bump up the aforementioned metrics (the metrics that feed their timeline adverts), engagement rate and session length.
So now you've got Instagram Stories *possibly* ad-free and Snapchat Stories ad-filled. If this is the case, over the course of the next 24-months, there will definitely be some migration to Instagram. But will it enough to worry or even 'kill' Snapchat?
Today, we’re introducing Instagram Stories, a new feature that lets you share all the moments of your day, not just the ones you want to keep on your profile. As you share multiple photos and videos, they appear together in a slideshow format: your story. With Instagram Stories, you don’t have to worry about overposting. Instead, you can share as much as you want throughout the day — with as much creativity as you want. You can bring your story to life in new ways with text and drawing tools. The photos and videos will disappear after 24 hours and won’t appear on your profile grid or in feed.