Photo-sharing application Instagram has lost nearly half its daily users in a month after publishing updated terms and conditions which said it would have the right to sell users' photos without notifying them.
Following an instant backlash among social media users, Instagram quickly backtracked on its earlier statement, saying that sweeping changes was not what it intended.
Instagram, which was purchased by Facebook for US$700 million in cash and shares last April, added that it was not their intention "to sell your photos".
But the damage was already done, with many users' threatening to quit using application.
And it appears they have stuck to it - new figures reveal Instagram's active daily users - the highest frequency user group - has dropped to 8.42 million this week, from 16.35 million on December 17, the day the controversial news broke, the New York Post reported.
The statistics were compiled by AppStats, which measures app usage by tracking users who are logged into Instagram via Facebook.
AppStats CEO Sebastian Sujka told The New York Post: "The main loss will be most likely due to the terms of service changes, given how much attention and controversy the terms of service change has brought, and seeing how clearly the Instagram app dropped after the terms of service change."
Facebook has described the findings as "inaccurate".
"We continue to see strong and steady growth in both registered and active users of Instagram," Facebook said in a statement.
It appears that some changes to the application will still take place on January 16.