Instagram losing users after privacy backlash, report says

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Updated 1:11 p.m. ET

Instagram, the popular photo-sharing mobile app, may have lost almost 25 percent of its users, according to recent reports.

Instagram announced its updated terms of use on Dec. 17 and immediately disgruntled users complained about language in the new policy that suggested the photo-sharing app could accept payment in exchange for the use of a person's username, likeness, photos and other data for sponsored content or promotions.

Another change to Instagram's terms of use suggested that the company did not necessarily have to identify ads or sponsored content in its feed.

The company backtracked on its terms within days, but if new analytic data is correct, the fallout of Instagram's misstep may be significant.

According to the New York Post, citing data from analytics firm AppData, Instagram's daily active users dropped from 16.4 million to 12.4 million between Dec. 17 and Dec. 27. Contrary to its daily numbers, AppData reports that Instagram's monthly active users have ticked up to 43.3 million -- a rise of 1.7 million users in the last 7 days.

It's worth noting that the data may not be completely accurate, but may be used as guidance of daily usage trends. The Post points out, "AppData isn't able to measure every user of a particular app such as Instagram, but its numbers reflect trends in usage."

Instagram denies the report and told CNET, "This data is inaccurate. We continue to see strong and steady growth in both registered and active users of Instagram."

Instagram launched in October 2011. The San Francisco-based company, which is now owned by Facebook, reports 30 million registered users.

Facebook announced its intentions to acquire Instagram in April. When all was settled, the social network paid $715 million in cash and stocks.