Instagram Loses a Quarter of Daily Users After TOS Fiasco

After the controversy that revolved around Instagram's policy changes, the company made a quick change to their Terms of Service and helped assuage the fears of its users. However, that didn't stop Instagram from losing nearly 25% of its daily users. On Christmas, only 12.4 million users took photos with the app, while the week before peaked at 16.4 million.

Instagram says that despite what the information from the AppData survey says, the service experience no such lull. "This data is inaccurate," said an Instagram representative. "We continue to see strong and steady growth in both registered and active users of Instagram."

While something like this recent snafu won't spell doom for Instagram, it does give other services the opportunity to snatch up users. We'll have to wait to see what, if any, long term effect this has on Instagram and Facebook.