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Instagram Loses Almost Half Its Daily Users In a Month 250

Posted by samzenpus
from the here-we-go-again dept.
redletterdave writes "Instagram scared off a lot of users back in December when it decided to update its original Terms of Service for 2013. But even though the company reneged on its new terms after a week of solid backlash, Instagram users are still fleeing the photo-sharing app in droves. According to new app traffic data, Instagram has lost roughly half of all its active users in the month since proposing to change its original Privacy Policy and Terms of Service. In mid-December, Instagram boasted about 16.3 million daily active users; as of Jan. 14, Instagram only has about 7.6 million daily users." Towards the end of December data showing a 25% drop in Instagram's daily active users came out. While it caused quite a bit of discussion online, it was suggested that the decline was due to the Christmas holiday or an inaccuracy in the data.
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Instagram Loses Almost Half Its Daily Users In a Month

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  • by FooAtWFU (699187) on Monday January 14, 2013 @06:49PM (#42586463) Homepage
    My proximate annoyance was the Instagram/Twitter war. Much less convenient to post things there now.
  • by Anonymous Coward on Monday January 14, 2013 @06:50PM (#42586467)

    Although probably hard to determine, I would venture to guess that Instagram blocking access of their images to Twitter had a bigger effect.

  • oblig xkcd (Score:5, Interesting)

    by BenSchuarmer (922752) on Monday January 14, 2013 @06:56PM (#42586527)
  • by Swampash (1131503) on Monday January 14, 2013 @07:02PM (#42586599)

    Key features of Instagram are image enhancement filters with pseudo HDR reconstruction.

    No, those are just the carrot on the stick. The key features of Instagram are that it's a mobile-only social network, its reason for existence is location-based photo sharing, and it's dominated by iPhone users. The fact that it's mobile-only has every incumbent desktop social network scared. The fact that it's based on photo sharing had Facebook scared, because photo sharing is what made Facebook what it is; and the fact that it's dominated by iPhone users has advertisers salivating, because iPhone users are, demographically, more wealthy and more likely to spend money on products and services.

  • by Anonymous Coward on Monday January 14, 2013 @07:06PM (#42586651)

    Can we mod this question to oblivion please? It's as redundant as the first post meme, and should be modded accordingly.

  • by Synerg1y (2169962) on Monday January 14, 2013 @07:17PM (#42586749)
    That's the beauty of the internet, some poor shmuck decides to read the small book that is a typical TOS "contract" finds something alarming like instagram's new rules, or Sony's clause against class action lawsuits and then posts it to the internet for the rest of us who don't bother. As long as there's whistleblower's and given the current state of TOS... it can get worse, but let's hope cases like this make it better. The lesson learned with instagram and the internet is informedusers will avoid your business and switch to a competitor if they don't agree with your shady business practices.
  • by Anonymous Coward on Monday January 14, 2013 @07:30PM (#42586885)

    You wouldn't see a 50% daily drop in users if your app started farting in the users' face after each pic was posted. This is more than just a "fad" growing cold. This is herd mentality running away from something that they were told they should be scared of or offended by.

  • by adisakp (705706) on Monday January 14, 2013 @07:46PM (#42587027) Journal
    I know a lot of people who are twitter users and were pissed off at Instagram when they broke Twitter integration. The unfavorable TOS just was the last straw to get Tweeters to leave in droves.
  • by Anonymous Coward on Monday January 14, 2013 @07:57PM (#42587133)

    Free or not, people still hate the bait-and-switch. And why shouldn't they? Before the TOS change, the free service left their content under their control (and copyright). Then, after the switch, the same service suddenly grabbed your copyright away from you and decided to do whatever they want with your stuff.

    I recognize that they don't have any obligations to provide a good service, especially since it is free. I also recognize that "you can host your images here at no cost, and in return we get a license to use them" is a bargain that some might find reasonable. The problem here is not the deal itself, but that the deal was so suddenly and significantly changed.

    I will add that this deal, however reasonable, is not one that many people want to take.

  • by Loosifur (954968) on Monday January 14, 2013 @08:01PM (#42587171)

    I think the following link to xkcd is instructive here: http://xkcd.com/1150/ [xkcd.com]

    as is the following regarding Facebook: http://www.ethannonsequitur.com/facebook-you-customer-product-pigs.html/facebook-and-you-pigs [ethannonsequitur.com] .

    Instagram has no business model. It operates at a loss. The whole reason Instagram operates is to attract "customers" that provide it with free content. The whole reason Facebook paid $1 billion for Instagram was to gain access to a ton of users who now depend on the site to host their content, and who may cede their rights to said content depending on how sneaky the ToS change can be. It's just got "sucker" written all over it.

    A better analogy would be if I opened a parking garage in a city and let anyone store their car(s) there for free. Then, after a year or two, let people know that I reserve the right to auction their vehicles without additional notice.

  • by Savage-Rabbit (308260) on Monday January 14, 2013 @08:28PM (#42587357)

    What nitwit modded you insightful?

    Look, I pay money for a hotel room-- that fee goes to an expected level of security. I pay nothing for Instagram's services-- no expectation of security, or of any service at all. Is instagram an online storage business? No. Therefore, the pictures you upload are not there for you to store-- they're for Instagram to use however they want... your pictures are free, as in beer.

    Point of fact, since no one is paying you for your pictures, they are literally worth nothing.

    Link to an XKCD [xkcd.com] in case you're still confused as to what storage, business, and free is.

    You can split hairs about his analogy all you want but he still has a point. Your pictures are only free (as in beer) for Instagram to flog to their corporate buddies as long as people are willing to put up with it. Shockingly, for whatever bunch of arrogant and inexperienced young Turks at Facebook who came up with the dumb idea of hijacking user's images, it seems that Instagram users are in fact not willing to put up with it and are fleeing the service in hoards.... well DUH! the joke's on Instagram/Facebook. Instagram is it's users, without the users and their images Instagram is worthless (as in used paper-towel that somebody has blown their nose with). Because somebody failed to realise this a $1 billion investment is circling the drain. It is always fascinating to watch as a real world example of truly epic ineptitude unfolds.

  • by mcgrew (92797) * on Monday January 14, 2013 @08:48PM (#42587539) Homepage Journal

    I find it to be a decent example of how not to treat your users.

    In their defense, the 20th century is over. What company doesn't shit on their customers these days? From MS's W8 to Sony's XCP and otherOS, Apple's "you're holding it wrong" and its replacing Google Maps with a turd sandwich, Oracle's refusal to fix Java bugs until the government gets involved... fucking over your customer is the new normal.

    It's one of many downsides to a global economy. With seven billion prospective customers you can afford to target only those who are stupid and lack self-respect. The rest of us are boned, all we can do is bitch, and refuse to go along with the stupidity.

    Whenever I see users act like this, it gives me hope. I'd be more hopeful if Instagram died, maybe it would give other companies pause.

  • by boorack (1345877) on Monday January 14, 2013 @09:01PM (#42587619)
    Given that Zuckerberg has so good relations with Wall Street folks, that they decided to con Facebook shareholders to make him richer by pumping Facebook stock prior to IPO (typically they undervalue stock to make themselves richer - or at least used to), I doubt Instagram fiasco will have meaningful impact on Zuckerberg's business. Whatever disastrous deal this guy will do, he will be afloat anyway. Is Zuckerberg the new Murdoch ?
  • by mcgrew (92797) * on Tuesday January 15, 2013 @10:44AM (#42590963) Homepage Journal

    Get some perspective! Windows 8 look like a stupid tablet, whine whine whine!

    I'm 60, in my day corporations couldn't get away with this nonsense because they knew we wouldn't stand for it. I can't understand why you kids have no immunity to advertising and propaganda.

    If the new iPhone had come out when we were your age it would have bombed badly, but your generation gives all sorts of excuses to sociopaths. I find it both sad and hilarious.

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