The photo-sharing app also announced it would be launching a stand-alone app called IGTV to host these long-form videos. The app will be available this week, according to technology website, The Verge.
"When you watch longer video, you need a different context," Instagram co-founder and CEO Kevin Systrom told The Verge. "We really wanted to separate those two, so you could choose which adventure you wanted to go down."
The longer videos will also be available through a tab in the original Instagram application. Accounts with wide audiences will be able to post videos of up to an hour.
The update comes as Instagram, which Facebook bought in 2012 for $1 billion — is looking to compete with fellow video platform YouTube for young users.
Google bought YouTube in 2006 for $1.65 billion. Since then, the video-sharing website has ballooned to a user base of 1.8 billion, becoming a platform for aspiring content creators looking to strike it big.
Systrom told The Associated Press he hoped his app would gain similar success with the IGTV update. At a release event for the app Wednesday, the company announced IGTV now had over 1 billion users.
The IGTV app will function similar to television. Videos will begin playing as soon as the user opens the app and will fill be full-screen vertically — contrasting with YouTube, which requires users to turn their phones horizontally for full-screen capabilities.
Facebook announced Tuesday it would be launching a series of interactive shows on its own video outlet, Facebook Watch.