Facebook has launched a new service known as ‘Video on Instagram’, which allows users to record up to 15 seconds of video and upload onto its network, to compete against Twitter-owned Vine.

The new service customised for iPhones and Android-powered smartphones features 13 filters that enable special effects and post to users Facebook pages in the similar way as posting pictures.

Video on Instagram also incorporates a ‘cinema’ feature, developed together by Instagram engineers and video scientists, which eliminates the shaky handheld shots and makes videos a bit steadier.

Instagram chief executive and co-founder, Kevin Systrom, said that prior to launch, the Instagram team trialled several time limits as it built the new feature.

"It’s the right balance," Systrom said.

Currently, only the iPhone 4S or iPhone 5 users will be able to shoot video using the Cinema feature.

Instagram was acquired by Facebook for $1bn in April last year and had already revealed a plan to add the video feature to its service.

The launch of new Instagram video functionality comes after Facebook’s addition of hashtag feature in its comments, which assists users in tracking popular topics being discussed on the social network.

Instagram users have now reached about 130 million people, with about 16 billion photos being shared on the service.