Backpedalling is more effective when you ride fixed gear
19/12/2012
Instagram clarifies (almost completely rethinks) their terms. That must have been quite a few users that ditched for other sites today.
As far as I'm concerned, the damage is done (I've closed my account anyway). They tried to get away with a (genius, douchey) potentially very profitable new business model, got caught and quickly switched to plan B (which is also a great idea, plus it'll benefit all users and keeps Instagram as the product rather than you).
Unfortunately for Instagram, a load of users will have just ditched their accounts (and, in turn, their username, all their images and activity) and I can't see them reinstating usernames for everyone. It's just too late for some people. Myself included. I'm already playing with using Flickr to share.
Let that be a lesson/cautionary tale for your business. If you change your terms, translate everything into plain English and if it reads like a douchebag manifesto, maybe you should change it.
Update they haven't actually changed their terms, they've just "clarified" the existing ones. I still don't trust the legal double-speak so I'll continue to keep my distance.