This option was first spotted by reverse engineering expert Jane Manchun Wong back in March, with several variations appearing in the back-end code since. It is believed this is Instagram's response to Tik Tok which is similar to Vine.
Vine was able to fuel the careers of several musicians through viral trends, and TikTok looks to be filling that same gap. Instagram will be hoping to negate some of that with additional music options, but it's hard to see them knocking TikTok off course entirely, given the app's popularity.
It is likely that music stickers with lyrics will be popular. Given the trend of music-related clips, you can imagine that the capacity to overlay meaningful lyrics will add a little extra to Instagram Stories. TechCrunch notes that TikTok has also added a new text overlay option as well, though it's fairly basic at this stage.
For an established platform like Instagram to accommodate changes to keep up with competition is great news for a platform like Tik Tok if they can keep innovating for their niche. Check out the new musical stickers and let us know your thoughts. Did you wake up in the morning feeling like P Diddy?