Nikhil Kamath, co-founder of Zerodha, recently shared his views on the fundamental differences between Instagram and YouTube, arguing that Instagram will never surpass YouTube in terms of impact and user engagement. He also emphasized the need for an Indian alternative to the dominant platforms like Meta and Google that aren't very cost-effective when it comes to marketing spends.
Why Instagram Will Never Supass YouTube
In his LinkedIn post, Nikhil Kamath explained why Instagram, which is owned by Mark Zuckerberg-Meta, was never able to overtake YouTube as the industry leader in long-form video production.
According to the post, social media took off in the early 2000s because it was an "irresistible prospect" for most people to share and observe what their friends were doing in their lives. The post also stated that "These platforms soon realised that they would need to bring in some bigger guns to keep their momentum."
Kamath highlighted a key distinction between Instagram and YouTube: user intent. He explained that people visit YouTube with a specific purpose, whether to watch educational content, listen to music, or follow long-form discussions. This makes YouTube a "destination" platform where users actively seek out content that aligns with their interests.
In contrast, Instagram operates more as a "distraction," where users engage in endless scrolling without a clear objective. Kamath pointed out that Instagram’s design encourages mindless consumption, leading to addictive behaviors.
He noted that many users frequently deactivate their Instagram accounts to break away from this cycle—something rarely seen with YouTube. This highlights how the two platforms differ in their ability to retain users and provide long-term value.
However, Kamath also stated that Instagram had a "huge advantage" over YouTube in that users could share content on the app itself rather than needing to move to another platform.
“In other words, Instagram not only owned content but also served as a distribution platform. But YouTube has never had that: If you want to share something, you have to go off-platform,” Nikhil Kamath's post said.
This gap may have allowed Instagram to surpass YouTube, which it attempted to do in 2018 by leveraging its edge and introducing long-form video with IGTV. “But IGTV died a slow death and was retired in 2022,” the post said.
Also Read: Blinkit Shifts To Variable Commission Model To Improve Take Rates
The Need for an Indian Alternative
Digressing from the comparison between Instagram and YouTube, Kamath also highlighted a larger concern—the need for an Indian alternative to global tech giants. He pointed out that Indian startups and entrepreneurs cannot continue spending all their marketing and distribution budgets on platforms owned by Meta and Google indefinitely.
The dominance of these companies forces businesses to rely on expensive advertising models, limiting their ability to grow organically. Kamath emphasised the significance of creating an Indian substitute for social media behemoths like YouTube and Instagram. He maintained that India has the potential to develop homegrown digital platforms that address the specific needs of Indian consumers.
Kamath thinks that a localised approach to social media could provide better engagement and monetisation prospects for content providers, especially given India's large internet user base and expanding digital economy.
Also Read: Gurgaon Engineer Who Quit Dell to Launch His Startup Calls Out Workplace Jealousy, Says Nobody Congratulated Him
/startuppedia/media/media_files/2025/03/07/QlC0basuDb1Pbijnbo1n.jpg)