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Instagram and Netflix: Privacy Changes and Consumer Power

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The social media world is ending 2012 with a bang. Between the fallout over Instagram’s new privacy policy and Netfllix’s plan to introduce social sharing, the Internet is ringing in the New Year with plenty of changes. With these changes comes the opportunity for consumers to redefine their role in the social media world.

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The general sentiment expressed throughout the social media world about Instagram’s new terms of use was outrage. Concerns that the popular photo sharing service would begin selling users’ photos ran rampant, and many users threatened to terminate their accounts.

In contrast, the “Netflix amendment” to the Video Privacy Protection Act was met with enthusiasm from the online movie service’s users who have yearned for the ability to share their viewing habits via Facebook.

With polar opposite responses from users, what do the new social policies of Instagram and Netflix have to do with each other?

They both give signs that 2013 will be defined by the power of the consumer.

Instagram and Netflix have realized traditional word of mouth as one of the most successful means of advertising. That’s the motivation behind the companies’ end-of-year policy changes.

For years, Instagram-ers have been creating ads without realizing that’s what they’re doing. Every time users post filtered pictures of their Starbucks Frappuccino, it’s an advertisement for Starbucks.

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The power lies in the genuine nature of the ad; the picture is backed by the personal recommendation of someone the viewer is personally connected to. All this realization by Instagram means is those personal “ads” are now worth something to businesses that are paying attention.

The same is true for Netflix. Commercials for movies and the online-viewing service lack the personal connection consumers find from a friend’s recommendation.

So what does this mean for consumers? We have all the power.

Embrace your new role as personal recommender. Be a brand advocate for the places or products you love. Don’t be afraid to post pictures to Instagram – think of each picture as your personal endorsement for the product.

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At first glance, all of these new privacy changes might seem like a huge intrusion on the personal lives of consumers. If we look harder though, these companies are really giving us the biggest voice we’ve ever had in the online world.

 

 


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