Facebook Privacy Policy Reversal

Riding a wave of controversy, Facebooks’ recent change to content rights has been reversed. Facebook had planned to own rights to all the content posted by the vastly growing user base. Catching wind of this were disgruntled users with a prerogative for claiming their privacy rights. The result was a unified body of Facebook users collaborating and petitioning for a change. Facebook, in looking to keep the peace, reversed their new privacy policy stance.

Facebook’s quick about face on the privacy policy represents a significant determinant in their hopes monetize the vast about of information provided by the 170 million plus user base. The initial change in policy said that even after a member deleted their profile, Facebook owned rights to the content. Such a new policy would have enabled Facebook to have more leverage with selling and monetizing this information to advertisers and research firms. Unfortunately for Facebook, users did not respond well to the change and this newly added clause was quickly removed.

The recent events in the past week represent a signficant moment both for Facebook and million of users for the following reasons:

• Financial Struggles:Facebook, operating between 100 million to 300 million in revenue a year, have failed to find their footing on a business model that will capture the potential of the vast amount of information posted on their site without stepping on the toes of members.
• Privacy Issues:The policy reversal demonstrated to Facebook that members value their privacy. Most influenced by the recent controversy is the fastest growing demographic, members above 30. Typically these users are more hesitant about posting information on the web and as a result, their favor of the Facebook of the brand image has lowered.
• Three Strikes: According to a recent poll, two-thirds of younger uses have a favorable perception of the Facebook brand. There is one thing that may hurt this: more events in which Facebook manipulates terms of privacy. Facebook should be careful in overstepping their bounds, as demonstrated by the quick collaboration of users last week.