This dissertation is based on five empirical research articles investigating the different latent factors that motivate and hinder the process of digital-photo interaction in computer-mediated platforms. Study I examine the current practices surrounding digital photos in the context of personal photo repositories (N=15). Study II investigates the gratifications and impeding factors associated with photo-tagging activity on Facebook (N=67). Study III develops and tests an instrument for understanding the gratifications of Facebook photo-sharing (N=368). Study IV examines the impact of various aspects of privacy in relation to photo-sharing intentions on Facebook (N=378). Finally, study V investigates the age and gender differences regarding various aspects of privacy and trust in the context of photo-sharing activity on Facebook (N=378). The dissertation reveals the following findings: First, lack of "social features" is one of the essential reasons for non-acceptance of tagging feature in standalone photo management applications. Second, photo-sharing and photo-tagging adoption and popularity can be attributed to various factors such as affection, attention, communication, disclosure, habit, information sharing, self-expression, socialization, and social influence. Third, age, gender, and activity influence photo-sharing and photo-tagging gratifications. Fourth, in the context of Facebook photo-sharing, various aspects of privacy significantly impact users trust and activity and consequently photo-sharing intentions. Fifth, women and young Facebook users are significantly more concerned about the privacy of their shared photos. Sixth, privacy-protective measures are significantly exercised more by young Facebook users, yet they exhibit more trust and a higher level of activity on Facebook.