Are instagram users reasonable in expecting their postings

Assignment Help Management Theories
Reference no: EM131020340

Case: Instagram and the Ethics of Privacy

Founded in 2010, Instagram considers itself to be "a fun and quirky way to share your life with friends through a series of pictures." By downloading the free Instagram mobile application, users snap a photo with their mobile phone, then choose a filter to transform the image, and can share it on various sites such as Facebook and Twitter. The company views itself as more than just a photo-storage tool but a way "to experience moments in your friends' lives through pictures as they happen. We imagine a world more connected through photos."

In April 2012, the 13-employee company was acquired by social networking giant Facebook for approximately $1 billion. In less than three years, Instagram has become one of the fastest growing social media platforms as seen by its estimated 12 million daily users.

In December 2012, several months after being acquired by Facebook, Instagram announced new changes to its privacy policy and terms of use. According to the updated terms, "a business or other entity may pay Instagram to display users' photos and other details in connection with paid or sponsored content or promotions, without any compensation to you," and there was no apparent option to opt out. The backlash was immediate. Photographers and celebrities were particularly upset, given that their photos were a part of their own businesses and brand images.

Instagram was quick to respond that its intention was simply to improve advertising. Co-founder Kevin Systrom posted, "Our intention in updating the terms was to communicate that we'd like to experiment with innovative advertising that feels appropriate on Instagram. Instead it was interpreted by many that we were going to sell your photos to others without any compensation. This is not true and it is our mistake that this language is confusing. To be clear, it is not our intention to sell your photos."

Instagram's privacy policies and terms of use were once again updated in January 2013. The current terms state, "You hereby grant to Instagram a non-exclusive, fully paid and royalty-free, transferable, sub-licensable, worldwide license to use the Content that you post." Instagram also reserves the right to share users' information (including analytics information, log files, cookies, and location data, as well as the content users post) with companies affiliated with Instagram (mainly Facebook), third-party service providers, third-party advertisers, and "other parties."

While the initial backlash against Instagram has been quelled, there is still uneasiness among users regarding privacy issues. Instagram has to walk a fine line to keep its users happy and still turn a profit. On one hand, Instagram offers a free service to users, which up until this point has been free of advertisements, unlike other social media platforms like Facebook. In order to remain a viable company, Instagram has to bring in revenue somehow, and advertising seems the obvious choice.

We believe that it is not unreasonable for Instagram to try to make money using member photos for several reasons. First, it would be foolish for Instagram to walk away from such a lucrative revenue opportunity.

Let us not forget that Facebook purchased the company for $1 billion in cash and equity in April 2012. Facebook owes it to its shareholders to try to monetize Instagram considering how much it spent on this company.

Second, users pay absolutely nothing for using Instagram's services. There is no price per photo uploaded, no subscription required, or pricing scheme of any sort. Individuals and celebrities are not the only ones who derive personal benefit from Instagram. Many small businesses like to use Instagram as a marketing tool because it is free and effective. Some will upload pictures of new product arrivals to lure new or existing customers to come in and purchase. Businesses like to have Instagram accounts because the service allows them to build their brand and customer loyalty through posts, giving them the venue to engage and interact with customers in ways they could not do previously.

1. How much, if any, of our information should Instagram be able to share with third-parties and advertisers?

2. Why are Instagram users making such a fuss about the revised privacy policy if they are gaining so much personal satisfaction or business from a service that is free?

3. Are Instagram users reasonable in expecting that their postings be kept private?

Reference no: EM131020340

Questions Cloud

Case: the case of the reference request : Case: The Case of the Reference Request. A former employee who was fired due to poor quality work, absences, and lateness related to a drinking problem, informs you that she has applied for a position at another company and has already given your..
Discounted cash flow model to determine the NPV : A five-year software development project is forecast to have net cash inflows of $15,000, $20, 000, $25,000, $30,000, and $50,000 in the next five years. It will cost $80,000 to implement the project, payable at the beginning of the project. If the r..
Farm will require an initial investment : Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.10 million. This investment will consist of $2.90 million for land and $9.20 million for trucks ..
Should eric accept the offer : Eric, a second-semester senior, is looking for a job. Anxious about finding work in the worst economy in decades, he sends out scores of resumes for a wide variety of positions. Should Eric accept the offer
Are instagram users reasonable in expecting their postings : Why are Instagram users making such a fuss about the revised privacy policy if they are gaining so much personal satisfaction or business from a service that is free? Are Instagram users reasonable in expecting that their postings be kept private
First annual retirement payment : Mel plans to save 10,200 dollars per year in his retirement account for 6 years. His first savings contribution to his account is expected in 1 year. Mel expects to earn 7.79 percent per year in his account. He plans to retire in 6 years. In retireme..
What actions should ben take when he catches a mistake : What actions should Ben take when he catches a mistake? Is he obligated to report every error, particularly since he works for a publicly traded company
What factors would weigh into your decision : How would you handle the dilemma between hitting the quota and submitting quality work you stand behind? What factors would weigh into your decision
House Mountain Breweries planning an IPO : House Mountain Breweries (HMB) is planning an IPO. Its underwriters have said that the stock will sell at $25 per share. The direct costs (legal, printing, etc.) will be $750,00. The underwriters will charge a 7 percent spread. How many shares must H..

Reviews

Write a Review

 

Management Theories Questions & Answers

  Without submitting a dual representation disclosure

May an attorney who prepares loan documents for a real estate purchaser at the request of the attorney's lender-client prepare a deed to be used in the transaction if he is not requested to do so by the seller and without submitting a dual representa..

  Why historical management theories important today

How does an understanding of management and organizational behavior lead to organizational effectiveness and efficiency? Why is the study of historical management theories important today

  Including such a large number of components

By including such a large number of components, such as two types of intelligence, the skills approach and its models are criticized for

  Affordable care act

Find a recent article on the Affordable Care Act (ACA) (within the last 6 months). Summarize and explain why the article is important and its impact on those who must comply with the law

  Thought it was safer than starting his own business

Thought It Was Safer than Starting His Own Business,

  Efficiency and recommend needed changes

You are a team of managers at a company. Upper management is concerned that the structure of the division your team manages is not accomplishing goals as efficiently as it could. As a result, upper management has tasked you to review the current orga..

  Designed to efficently manage a consumer b2c website

A virtual organization is often designed to efficently manage a consumer (B2C) website

  Review a classic article by peter drucker

Review a classic article by Peter Drucker - one of the world's foremost and influential authorities on management theory from the latter half of the twentieth century

  What areas offer the most opportunity to build collective

If the 21st century, post-9/11 threat environment requires elevated levels of cooperation and coordination across the interagency, what areas offer the most opportunity to build collective action and increased interagency coordination?

  The director of a youth basketball league in a large city

You are the director of a youth basketball league in a large city with thousands of kids participating. You count on parental involvement to coach your teams, but you continue to have verbal abuse problems with parents towards the referees, opposing ..

  The us auto industry and characterize that company commitm

Choose another company in the US auto industry and characterize that company’s commitment to the environment - list in bullet points its commitment to the environment.

  Capstone project overview

Capstone Project Overview

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd