There are reports around the Web that Instagram has lost 25% around of its daily active users connected to Facebook, according to an app-tracking firm AppData. Some reports are attributing it to the change in Instagram’s terms of service, which had caused a frenzy on the Web. Facebook’s stock also is down more than 2% today, which could be a result of those reports — any weakness in an app that Facebook paid $1 billion for at the time wouldn’t be well-received by the market. But it doesn’t seem like the claim that Instagram’s terms of service change led to a massive exodus is true. Instead, it had to do more with the seasonality of app usage, according to AppData. Here’s the statement: “AppData reflects only Facebook-connected users of the Instagram app. Though the terms of service change spurred a lot of negative media attention and complaints from users, the decline in Facebook-connected daily active users began closer to Christmas, not immediately after the proposed policy changes.”
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"Instagram’s “25% User Drop” is False, Isn’t Privacy-Related" by @ShellyPalmer