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Instagram faced its first major problem a few days back when it updated its terms of service and privacy policy with some very confusing legalese. When the language seemed to imply that Instagram could make commercial use of user photos without any payment to the said users, there was a huge outcry. Many people got angry and threatened to delete their accounts with the service. It went to such lengths that National Geographic, stopped posting content to its Instagram account because it was concerned about the terms.
The backlash put Instagram on the defensive. CEO Kevin Systrom blogged saying that Instagram would never sell user data and that they had screwed up by making the legal language difficult to follow. He said that the company would be coming back with a simpler language to explain the terms. Saying that the language wasn’t clear enough is not a good enough excuse though.
That being said, Instagram has got a taste of the public sentiment and if they really care about the users, they will make sure that it never happens again. Facebook has gone through many such episodes and should have known the reaction beforehand. However, not many have gone and quit Facebook, because those guys have fixed their issues more or less in terms of privacy. However, the reaction to Instagram was the strongest. This must have been scary to Facebook as this level of backlash was probably not expected. Thus, I feel it is okay to continue using Instagram because they have clarified that they will not sell your pictures. Yes, there will be ads and all kinds of promotions but we have got used to it on Facebook, haven’t we? Yes, this is a jolt for Instagram’s loyal user base and the company is walking a thin line when it comes to its monetization possibilities. This is where they need to innovate rather than alienate. Repeated screw-ups like this could lead people to head to other options. You know what? Google+ is looking mighty nice right now. No ads, no brand promotions yet, a user friendly data policy and finally good functionality even though the traction is missing.
Finally, I would like to talk about an important issue in modern free apps. There are people who seem to think that if an app is free, the company has a right to own your data. I understand that a company has to monetize their services but there is no reason that it should do what it wants with user data. There is no need for users to pay a price because the company hasn’t thought out its monetization strategy yet. It has already been established that many people will pay for a reasonably priced app if it is a solid one. Hipstamatic was one such app which was doing pretty well before Instagram came around. But people didn’t just adopt Instagram because it was free! Instagram has a social network backend while Hipstamatic did not. That is why Hipstamatic failed. Whatsapp is doing well with its pricing strategy. Instagram should probably have looked at a pricing like that. Now I guess it is too late and they should be looking at some really meaningful ways to monetize in ways that won’t piss people off. Till then, I guess Instagram users won’t really delete their accounts. Thankfully for Instagram, Internet outrage even though it is ferocious, doesn’t always amount to much if you solve the problem quickly.
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2012-12-20 09:54:35
Source: http://www.watblog.com/2012/12/20/why-no-one-will-delete-their-instagram-accounts-just-yet/