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The aim of the Fiasco Awards is rewarding the best projects in the ICT field that have ended up as a FIASCO. We want to promote a critical spirit, a positive attitude towards the obstacles in the road to success, and why not? let's admit it: to have fun. More »
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Finalist Fiascos
Instagram

Instagram

History
Instagram is a free mobile application developed by Kevin Systrom and Mike Krieger, allowing users to take photos, apply a filter, and share it either on the platform or on various social networks, including Facebook, Twitter, Flickr and other . The product was available at the Apple Store on October 6, 2010.
The application was initially compatible with any device that would work with iOS 3.1.2 or higher, and in November 2011 it had 12 million followers. In April 2012 was made public version for Android.
In April 2012 Facebook announced the purchase of the popular application for 1,000 million dollars.

The Fiasco
On 18 December 2012 Instagram changed its privacy policy, and were available free of charge and without any restriction on all photos of all its users.

Is this a platform, similar to what happened with Delicious has not been able to settle down and fit into the business model as a platform independent and has been sold to Facebook (Delicious was bought by Yahoo!).

The need to find a business model, and apply measures of privacy and property Instagram level that Facebook requires its users using their monopolistic dominance of authoritarian situation has led to a lack of trust of their users, a decrease its use and, ultimately, a business on the floor.


What can we learn?
Instagram new conditions applied to its users when it was not the best time to make a change like this. Able to use the photographs of users purely economic purposes was a risky step and taking into account that the user can access many other alternatives to Instagram.
The passage of a model 100% Free, a freemium model, should be the contribution of new value to users. You can not go charging without adding anything new, and even less about taking intellectual property rights to users who have trusted from the start.

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