Facebook Inc (NASDAQ:FB) is looking forward to foraying into a short video sharing, which can be a source of huge revenue, says a report from CNBC by Cadie Thompson.

Facebook Inc

At a press conference held at the headquarters of the social networking giant, there was no clear picture given of what product exactly Facebook Inc (NASDAQ:FB) is about to bring, but it is expected that a video function app will be launched for the photo sharing app Instagram.

The product may be the same as Vine from Twitter where users can post six second videos.

Experts consider it a good move

According to Rob Jewell, CEO of Spruce Media the addition of a video sharing app in Instagram can help Facebook Inc (NASDAQ:FB) to realize revenue from Instagram.

According to Jewell, the video sharing app is still an untapped area, and by 2014, it is expected that Facebook Inc (NASDAQ:FB) will dominate in video advertising. Facebook has a massive amount of videos so adding such an app to Instagram will hike the inventory for sure.

Jewell further mentioned that Facebook reached the milestone of 1 million advertisers who use the Facebook platform and has the potential to expand even more. He said that the video advertisers also want to take advantage of the Facebook platform.

Jewell said that it is clear that small video sharing is popular after observing the activities over Vine and Facebook have the potential to take advantage of that.

Twitter’s Vine- major threat

However, Twitter’s Vine will be a major challenge for Facebook.

The vine app of Twitter already has 13 million users according to what microblogging site announced earlier this month. There was no revelation from Twitter about how many are active but, according to analytics company Topsy, around 12 million Vine videos are posted by users on Twitter every day.

Jewell said that Instagram took almost a year to reach 13 million users, which is equal to Vine. If Vine will go garnering the same growth rate without any competition, then it would be a loss for Instagram.

A potential revenue generator for Facebook

Facebook Inc (NASDAQ:FB) acquired Instagram last year for $1 billion but could not generate revenue from advertising on the platform. The users did not support the idea of Instagram, back in December, when it decided to bring advertising app on its product.

Brian Blau, a technology analyst at Gartner said that Facebook Inc (NASDAQ:FB) will cater its users with new features continuously. He said that if Facebook comes up with an idea similar to Vine it will be a good revenue generator for the company.

There are expectations that the video sharing app of Facebook will have some new features, which lacks in Vine, like video filters and longer recording time.