"Threads invites users to automatically share their location, speed, and battery life with friends, along with more typical text, photo, and video messages using Instagram's creative tools," the report said late Monday.
Earlier this year, Instagram put an end to "Direct", its standalone camera-first messaging app which was used to send Instagram direct messages.
Initially launched in six countries -- Chile, Israel, Italy, Portugal, Turkey and Uruguay --Ain 2017, the Direct app came in with plenty of Snapchat-style filters and also allowed users to swipe down from the top of the screen to type messages to their Instagram contacts.
This time, a messaging app built around close friends might be more popular.
"For Facebook and Instagram, which have long coveted Snapchat's strong engagement among younger users, 'Threads' could represent another effort to chip away at their rival's appeal," said the report.
The core of Threads appears to be messaging, and it looks very similar to the existing messaging product inside Instagram.