By Khurram Aziz email: email@example.com | Dec 28, 2012 08:42 PM EST
However, some analysts have countered that the decline happened a long time after the Dec.17 debacle and the two incidents are not correlated.
The story was first reported on the New York Post with figures provided by AppData showing that the photo-sharing app only had 12.4 million active users over Christmas compared to 16.4 million at its peak.
"[We are] pretty sure the decline in Instagram users was due to the terms of service announcement," AppData told the news site.
However, the backlash resulted in a host of celebrities threatening to delete their accounts, including Kim Kardashian - Instagram's most followed user.
"The story cites AppData, which tracks usage of Facebook applications like FarmVille," said Seward. "Some users have connected their Instagram and Facebook accounts in a way that would show up in AppData's metrics, but most have not. So when the Post says, "Instagram, which peaked at 16.4 million active daily users the week it rolled out its policy change, had fallen to 12.4 million as of yesterday," it's only talking about a subset of Instagram users."
It could be that users were just more interested in their families and turkeys over that time, rather than their smartphones.
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