Derek Powazek pulls apart the saying “If you’re not paying for the product, you are the product” in his post I’m Not The Product, But I Play One On The Internet. His conclusion:

We can and should support the companies we love with our money. Companies can and should have balanced streams of income so that they’re not solely dependent on just one. We all should consider the business models of the companies we trust with our data.

But we should not assume that, just because we pay a company they’ll treat us better, or that if we’re not paying that the company is allowed to treat us like shit. Reality is just more complicated than that. What matters is how companies demonstrate their respect for their customers. We should hold their feet to the fire when they demonstrate a lack of respect.

This is, of course, in response to the Instagram TOS debacle, which resulted in an update from Instagram to clarify their terms in a post with the “please stop shouting at us!” title Thank you, and we’re listening. But as Faruk Ateş points out in What Instagram did wrong:

Bad language is merely a symptom of the bigger mistake they made. Their failure lies in not acknowledging—or understanding—the change in expectations that took place amongst their users when they sold themselves to Facebook for a billion dollars. […]

Once you sell to a frequently-criticized juggernaut like Facebook, users’ expectations change from supportive to skeptic, and, especially because of Facebook’s long history of privacy-related mishaps, you may very well lose all benefit of the doubt amongst some of your users.

Oh, how many PR disasters could be avoided if companies would learn to respect their users, and be more in touch with their needs and goals…