Systrom makes no attempt to deny that the company will still use user data and images to create "more relevant and useful promotion," such as users' photos being associated and surfaced on a promoted partner's account. According to the post, users who set their photos to private, however, will be immune — only those approved to follow their account will be able to see their posts.
Finally, Systrom addresses concerns from professional artists and photographers, reiterating that ownership of images has and will remain in the hands of users. Of course, under the previously mentioned provisions, public photos may still be associated or promoted with a brand as part of a paid partnership.
In the end, Instagram's proposed Terms of Service revisions remain somewhat fuzzy, but it's clearly not the unscrupulous infringement many originally claimed it would be. Instagram is simply reserving the right to use advertising models already in use by Twitter and it's new parent company, Facebook. Without a paid subscription model, Instagram's only asset is the content and traffic produced by users. Using it to generate revenue is neither unreasonable nor unprecedented. While the policy may be unfavorable to professional photographers who expect revenue from the distribution of their works, the practice should be considered a harmless cost of entry for the unfettered use of an otherwise free service.
Instagram plans to modify its new Terms of Service agreement before it takes effect in 30 days.