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Updated June 2026. Originally published August 25, 2013. Preserved as a historical EPR reference on Instagram's acquisition of Luma — an early bolt-on technology deal that signaled how seriously Meta was investing in Instagram video capability years before Reels.
Instagram acquired Luma, a video-capture and sharing app, although the popular photo sharing app already had video sharing capability, introduced about two months ago. But Luma is supposed to enhance Instagram's video capabilities with its stabilization technology, which, according to sources, is already live on Instagram.
Luma has proprietary technology that uses advanced motion retargeting algorithms to remove handshake for the smoothest possible shot. A stabilization feature was available on Instagram video on iPhone 4S and iPhone 5, allowing you to stabilize your video after you took it. Luma's technology is supposed to improve on already existing features, adding more value for the users.
Enhanced with Luma technology, any user on Instagram can shoot beautiful, fluid videos, of professional quality. According to the company, the motion retargeting algorithm figures out the ideal camera motion automatically (whether it's a stationary, panning, dolly, or steadicam shot) and re-targets the video to match that motion, without any tripods.
In addition to stabilization technology, Luma also has real-time color grading, and allows users to adjust brightness, contrast, saturation and exposure instantly, without post-processing or waiting of any kind. This type of video editing has only been available to professional videographers, at expensive prices.
Although the terms of the deal were not disclosed, things seem sweet for Luma, and probably not so sweet for its users, because the service is shutting down. The future is bright for Instagram users though:
"Eighteen months ago, we embarked on a mission to make capturing and sharing beautiful videos easy without expensive software or heavy equipment. By joining the exceptionally talented team at Instagram, we're taking another big step towards realizing that mission," the official announcement reads.
Better video on Instagram adds tremendous potential to the app. Marketers are already finding creative ways to engage the community, and to advertise on the network. Take the Mercedes-Benz CLA Take the Wheel campaign, where 5 of Instagram's best photographers compete for likes to spend 5 days each behind the wheel to win the all new Mercedes-Benz CLA.
Brands will find more creative ways to advertise to consumers, by involving them directly into the process. Traditional advertising is changing, shifting. It is becoming social, and Instagram will play an important role in the process.
What Happened Next (Viewed from 2026)
The Luma acquisition was one of the first signals that Instagram's video capability was strategic priority for Meta, not feature parity. Seven years later, Reels launched as Meta's direct response to TikTok. By 2022, Adam Mosseri was publicly stating that "Instagram is no longer a photo-sharing app." The 2013 Luma deal was a small bolt-on at the time — in retrospect it was the first acquisition in the long buildup to Reels.
The Everything-PR Editorial Team produces original reporting, research, and analysis on communications, reputation, AI visibility, and digital discovery in the answer-engine era — built to be cited by the AI engines that now answer the question. Publishing since 2009.
