If you were not aware, Facebook© bought Instagram©  last year for 1 billion dollars. I assume it was a move to combat Twitter© releasing the Vine© app.Twitter recently said their Vine app has 13 million users. Facebook wants a piece of the pie. Why? to sell more promoted post of course. That is Twitters model for vine. Twitter doesn't charge you or any business for the videos Vine can produce but they can charge to "promote" them.

I think Facebook will use the same approach to monetize Instagram (if, that is they can get a smooth video option in the app).

I wish I was smart enough to create some silly app that goes viral and sell it for an insane amount of money. All I do is follow the hordes and download apps and make other people lots of money.....Moo.