Fallout and Predictions for Instagram

Last week, Instagram announced changes to its privacy policy and has since lost 25% of its users. The photo-sharing site, owned by Facebook, clarified its terms of service to be closer in line with Facebook's. Changes laid groundwork for advertising on the site:

"To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your user name, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you."

Instagram updated termsThe new policy drew threats from Instagram heavy weights Justin Bieber and Kim Kardashian. #Boycottinstagram quickly gained momentum on Twitter.

In response, the company has apologized and reverted to its original terms of service.

Although Instagram is still bruised, at least one commentator is optimistic about the company and its quick growth to 100 million users.

Discussion Starters:

  • What's your reaction to Instagram's first revision to its privacy policy?
  • How well did the company recover from the criticism? What persuasive strategies did Kevin Systrom use in his blog post?