December 20, 2012, 8:30 pm
http://bits.blogs.nytimes.com/2012/12/20/instagram-does-about-face-reverts-to-previous-policy/?ref=technology
Photo-sharing service Instagram angered
customers earlier this week by announcing its users’ data would be used by
Facebook’s advertisers. Later on, however, Instagram changed this decision due
to customers’ dissatisfaction.
Instagram will instead change its
advertising policy after its users were concerned their information and
photographs would be shared with Facebook and its advertisers. Instagram users
had threatened to use other services, e.g. Flickr or the application Pheed, but
the company promised to revise its plans. However, even these changes have not
stopped users leaving Instagram.
The problem is that Facebook bought
Instagram earlier this year for $735 million and is under pressure for it to
make more money. Instagram is currently a free service. Banner advertising is
not enough, and users’ data are far more valuable.
Despite competition, Instagram has 100
million members, but this success could change in light of recent events. Facebook
and Instagram have so far declined to say if they had seen any significant
number of account deletions.
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