Meta's Reels, initially a competitor to TikTok, has become a significant revenue generator, surpassing a $50 billion annual run rate. This success is attributed to AI-driven recommendation systems that enhance content relevance and user engagement, particularly in video. Despite early struggles to gain traction against TikTok, Reels has seen increased user watch time on Instagram and Facebook. The company plans further expansion for Reels onto television screens in 2026.