I don't share my information with Facebook and I bet you don't either.
I share my information with my friends, I just happen to use Facebook to do it. It's a distinction that I wonder if Facebook really understands. Today in a conference call, Mark Zuckerberg pointed to Facebook's continued success by noting that people are still members, the mass quitting that so many discussed never truly materialized, though "Quit Day" still lies ahead. "We have seen no meaningful uptick in the number of people who deleted their accounts," he said.
And I doubt it ever will. But what I'm hearing anecdotally is that with each privacy concern, people share LESS on Facebook. The problem for Facebook is that if people put up less information, then I have less of a reason to go there to see what people are doing, and so do you. Think about how you use Facebook. If you're like me you log in, check out the newsfeed and see what's in people's lives. If that newsfeed doesn't interest you, and continues to be uninteresting, then you'll slowly move away. It'll become a place to grab some basic information (birthdays, locations, jobs, etc.) but its true utility will be gone.
I believe that Facebook is measuring the wrong thing. I believe a better metric would be the number of posts per person over time. You would have to examine their activity and create a standard, then measure how each user stacks up against that.
A drop in this usage would be the biggest threat to Facebook; it would be death by a 400 million cuts to the information we put out. If we stop sharing, Facebook stops existing. Not tomorrow, but slowly, over time, until it's that site you used to visit but doesn't have much pull any longer.
Will the privacy controls unveiled today keep people from fleeing? I'm not sure. In conversations with friends, mostly non-techies, their trust in Facebook has been shaken. While a change could help, rebuilding trust will take much longer and include many, many more steps. We all now realize that we're sharing with Facebook as much as with our friends, and that little change will change our behavior.We'll see what impact that action has on Facebook itself