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Keurig Stock Drops, Says It Was Wrong About DRM Coffee Pods

Posted by samzenpus on from the worst-laid-plans dept.

An anonymous reader writes: Green Mountain (Keurig) stock dropped by 10% this morning after a brutal earnings report. The reason? CNN Money reports that DRM has weakened sales of their Keurig 2.0. CEO Brian Kelley admits, "Quite honestly, we were wrong." Last year Green Mountain decided to make their new coffee machines work with licensed pods only. The company says they now plan to license more outside brands, and bring back “My K-Cup” reusable filters.

40 of 369 comments (clear)

  1. Yep, they were... by FlyHelicopters · · Score: 5, Insightful

    I have been a loyal user of K-Cups for years now...

    I will never buy a DRM coffee machine...

    The whole idea is just stupid. I get that they are trying to make money from every cup sold, just like the razor model, but frankly that is a boardroom fantasy...

    ---

    The same issue with music happened... once Amazon started selling DRM free music, I started buying, now having a collection of hundreds of "CDs" all downloaded to all my devices.

    I don't pirate any of them, nor do I share them outside my family. Sell me a product I control at a reasonable price and I'll pay you money.

    Simple.

    1. Re:Yep, they were... by trout007 · · Score: 5, Funny

      That's why I use a French press and a straight razor. Both will still be working in 25 years.

      --
      I love Jesus, except for his foreign policy.
    2. Re:Yep, they were... by NoKaOi · · Score: 5, Insightful

      The whole idea is just stupid. I get that they are trying to make money from every cup sold, just like the razor model, but frankly that is a boardroom fantasy...

      Exactly why I didn't buy one of these machines. I thought they were totally a-holes for making this move, but I gotta hand it to them, it's a rare thing for a business to admit that they were wrong. Good on them!

    3. Re:Yep, they were... by countSudoku() · · Score: 5, Funny

      How the hell do you get the razors to press?!?!?! I keep breaking the urn and my fingers are bleeding like crazy!!!!1!

      --
      This is the NSA, we're gonna geet U h@x0r5! Also, what is a h@x0r5?
    4. Re:Yep, they were... by PsychoSlashDot · · Score: 5, Insightful

      I will never buy a DRM coffee machine...

      Unless you're a prostitute, don't fuck your customer.

      You can get away with DRM on DVDs because consumers don't understand the tech. The phallus is invisible.

      You can't get away with DRM on a plastic cup with coffee grounds in it. The consumers UNDERSTAND that product, and KNOW you're fucking them. The phallus is very much visible.

      --
      "Oh no... he found the .sig setting."
    5. Re:Yep, they were... by Anonymous Coward · · Score: 5, Insightful

      Except it's not really a good lesson to the marketplace if all is forgiven.... "Try DRM, if it works, great. If not, your former customers will forgive you and all's good."

      They should not be congratulated for recognizing how stupid they are. Let's congratulate and support the coffee maker companies who DIDN'T try this.

      We need to engender fear in the heart of every executive who would even CONSIDER this insanity. So I say fuck them-- let their company suffer from their idiocy and let others learn from their failure.

      If this news makes you want to reconsider a keurig machine, re-reconsider. There are plenty of other great alternatives. And that goes for printer makers and anyone else who's thinking about going in this direction.

    6. Re:Yep, they were... by oobayly · · Score: 5, Funny

      Or accountant, or lawyer. Bonus for those who fucked their accountant and got their prostitute to do their tax return.

    7. Re:Yep, they were... by Wycliffe · · Score: 5, Insightful

      The whole idea is just stupid. I get that they are trying to make money from every cup sold, just like the razor model, but frankly that is a boardroom fantasy...

      With the exception of the DRM part, the rest of the 2.0 idea was somewhat sound. The idea that you could have a barcode which adjusted the brew temp, etc... depending on what was in the cup and have a larger cup so you could include creamer, etc.. If they would have just did that and made a better product and completely left off the DRM part then they might have actually had a sellable product and they could have even gotten the advantage of being able to hold off generics longer with renewed patents. By adding the DRM all they did was make sure that 2.0 was a complete flop.

    8. Re:Yep, they were... by NoKaOi · · Score: 5, Insightful

      Oh hell, I just noticed this in the article: Keurig plans to bring back the My K-cup accessory to allow customers to brew other brands of coffee. Okay, but what about "unofficial" k-cups? I like to use k-cups that don't have the DRM, and I rarely use my own coffee grounds in the My K-cup accessory. Noticeably absent is them saying you can use non-DRM k-cups. Then again, reporters are idiots so they may not have bothered learning the difference between the My k-cup which allows you to use grounds vs non-DRM k-cups. But if they still don't accept non-DRM k-cups, then fuck 'em!

    9. Re:Yep, they were... by hax4bux · · Score: 5, Funny

      Exactly. And they are EMP proof. Bring on the apocalypse, I will be shaved and enjoying my coffee.

    10. Re:Yep, they were... by jrminter · · Score: 5, Insightful

      Earlier this year our Keurig brewer needed to be replaced. Went to the store and got a new one. Got it home and our existing K-cups wouldn't work - they were the old version. Called Keurig - they told me they would replace my cups. Told them that wasn't good enough because I didn't want to worry every time we bought cups. The rep said there was nothing she could do. Told her she lost a customer for life.

      Took the brewer back, got a refund. Ordered a Mr Coffee version that is quite acceptable. Use whatever cups I want. Hope their management lose their jobs over this one. First rule of business is to treat your customers with respect or they (we) will find vendors who will. Interestingly enough, everybody figured out how to defeat their DRM. Keurig alienated customers and competitors found a workaround. Queue up Nelson Munch: "Haa Haa."

    11. Re:Yep, they were... by xevioso · · Score: 5, Insightful

      It's not an issue of a mere mistake. It's primarily a bad business decision, but also a very cynical one. I can forgive the bad business decision...companies make those all the time. It's the TYPE of business decision it was, which was an attempt to hijack choice away from consumers, which affects people personally when they use this machine for their coffee. That's something people will have a hard time forgiving.

    12. Re:Yep, they were... by xevioso · · Score: 4, Informative

      Well actually, they were literally admitting they were wrong. Literally.

    13. Re:Yep, they were... by Imagix · · Score: 5, Insightful

      I have to disagree with you. This wasn't a case of "hey, let's try this new, innovative thing" followed by "whups, unintended consequences, we need to stop doing that". This was a case of "Hey, those printer ink guys can get away with this stunt, and the software guys can get away with this stunt. So what if the actual consumers of both of those things abhor the idea. We're gonna do it anyway because more $$$$!" followed by "Oh wait, our customers have a choice to do something else with their coffee, so they're not buying our stuff anymore. Well, lets put out a 'oops' statement, and perhaps let a few more people use our DRM thingy." There needs to be _punishment_ for this. A failed marketing line was New Coke. This is quite a bit different.

    14. Re:Yep, they were... by Anonymous Coward · · Score: 5, Funny

      I could never finish the bath before it got cold.

    15. Re:Yep, they were... by hawguy · · Score: 4

      I will never buy a DRM coffee machine...

      Unless you're a prostitute, don't fuck your customer.

      Or Apple -- you lock in your customers all you want if you're Apple.

    16. Re:Yep, they were... by Anonymous Coward · · Score: 5, Insightful

      It was greed. The old saying goes: You can sheer a sheep many times, but you can only skin it once.

    17. Re:Yep, they were... by Lumpy · · Score: 4, Funny

      My doctor told me to not look away and dont blink.

      --
      Do not look at laser with remaining good eye.
    18. Re:Yep, they were... by Spamalope · · Score: 5, Insightful

      They tried to screw us consumers, and we were able to stop them. They didn't think better of it and stop, it's purely that they couldn't profit from it.

    19. Re:Yep, they were... by penguinoid · · Score: 5, Insightful

      In other words, you're advocating to never forgive them for their mistakes.

      How about we forgive them when they fire the people responsible for "mistakenly" deciding to intentionally screw their customers?

      --
      Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
    20. Re:Yep, they were... by Anonymous Coward · · Score: 5, Funny

      funny you should mention that. did you know that there is a town in western australia, Mercy, where the people have entirely different tastes in their hot beverages from their fellow Aussies. seems that while tea brewed from Koala fur is not very popular in Australia, it does have a small following. however, as one might expect, most aussies like to brew the fur in a french press or melitta type pot, thus keeping the pieces of fur out of their hot drink. This is not true in Mercy. they brew the fur in an open pot of water, and serve the resultant brew straight, with plenty of fur in it. Thus, the Koala tea of Mercy is not strained.....

  2. Plan to "license more outside brands"? by volkerdi · · Score: 5, Insightful

    If their plan is to get more third parties to go along with their DRM, then they haven't really learned a thing yet.

    1. Re:Plan to "license more outside brands"? by sjames · · Score: 5, Insightful

      I would say if they haven't started shipping units with the DRM disabled at the factory, they haven't yet gotten the message.

      Really they should do that and provide existing customers with a freedom clip if they want to salvage their sales (and stock value) for the year.

    2. Re:Plan to "license more outside brands"? by Daniel_Staal · · Score: 5, Interesting

      No, they've learned a few things:

      1: People care about what brands of coffee they drink.
      2: Limiting choices there makes them look like the bad guy.

      They think (and may well be right...) that by making this apology and opening up the choices on what coffee people make using their coffeemakers, that people won't notice that they're still limiting their choices on coffeemakers.

      They've learned to pick their battles and manipulate opinion.

      --
      'Sensible' is a curse word.
  3. stuuupid by Anonymous Coward · · Score: 5, Insightful

    Coffee is pouring hot water on ground beans. DRM'd Dispensers try to ignore that fact.

  4. Instead of DRM... by Anonymous Coward · · Score: 5, Funny

    ...they should have included Apps in their coffee apps so you could app while apping coffee! Or better yet, don't bother with coffee, and just brew more apps!

    Apps!

  5. Hacked by LeadSongDog · · Score: 5, Interesting

    Turns out their DRM consists of a colored rim on the pod. Taping a used v2 lid on to a v1 pod is all it takes.

    --
    Oh, I'm sorry sir, I thought you were referring to me, Mr. Wensleydale.
    1. Re:Hacked by Dr_Barnowl · · Score: 4, Informative

      Actually special ink that fluoresces a particular way in infrared light.

      But yes, you can mod the machine by sticking the rim of a v2 K-cup inside it in the right place.

  6. I'd like to see the environmental nightmare die by msobkow · · Score: 4, Insightful

    Personally I'd like to see the environmental nightmare of the Keurig and Tassimo curl up and die.

    --
    I do not fail; I succeed at finding out what does not work.
    1. Re:I'd like to see the environmental nightmare die by Sir_Eptishous · · Score: 4, Informative

      This. It is rather ridiculous that people use these non recyclable "K-cups" instead of a french press or just a pot of coffee.
      Billions of those cups, with the grounds still in them, filling up landfills, right when were trying to get away from crap like that.

      --
      We play the game with the bravery of being out of range
    2. Re:I'd like to see the environmental nightmare die by lophophore · · Score: 4, Interesting

      nespresso is even worse the k-cup. Though they both are pretty bad. an awful lot of waste for some convenience.

      me? I grind my own beans and put them into the portafilter of my 20-year-old Saeco espresso machine -- it won't die. The only waste is the spent coffee, and I feed that to my compost heap.

      --
      there are 3 kinds of people:
      * those who can count
      * those who can't
    3. Re:I'd like to see the environmental nightmare die by countSudoku() · · Score: 5, Informative

      I was not liking that either, but there's a brand at Costco (San Fran I think) that makes fully biodegradable k-kup compatible single serves. The bottoms are just filter, and the top is a corn-plastic ring and some kind of high-strength paper. Works great, dolphins agree!

      --
      This is the NSA, we're gonna geet U h@x0r5! Also, what is a h@x0r5?
  7. I have an idea by slashmydots · · Score: 5, Interesting

    Make your product better than your imitators! That's all you need to do. Why does everyone buy SD, PNY, Adata, and Silicon Power flash drives over those much cheaper no-name brand Hong Kong wonders on ebay? Because they lie about the speeds, they fail in about a week, and they're made with flimsy materials. Why do people go to Starbucks instead of Kwik Trip (or Seven Eleven for you southerners) for their coffee? Because Starbucks' product is better. That or because they're hippie douchebags. Either way, if you make your product better, your competitors get no business.

  8. I almost bought a 2.0 DRMed... by Ducho_CWB · · Score: 5, Insightful

    While looking for a coffee machine, I liked one of this 2.0 Keurig models.
    Then I learned about this "only keurig aproved" cups and actually bought an 1.0 keurig machine instead.
    And using this 1.0 model I can't see a reason for one buy a 2.0 model.

  9. The other way round by SuperKendall · · Score: 5, Funny

    The French Press is to prepare his skin for the straight razor - by compressing shaving foam directly into his pores, hair literally leaps from follicles into the path of the blade.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  10. Didn't matter to me. by kuzb · · Score: 5, Informative

    Hacking the Keurig is as easy as Hollywood style bomb defusing. You open it and literally cut the green wire. It takes less than 5 minutes and removes all restrictions.

    Video explanation here: https://www.youtube.com/watch?...

    --
    BeauHD. Worst editor since kdawson.
  11. They could have, if they were not stupid... by Anonymous Coward · · Score: 5, Insightful

    They could have gotten away with it if they had been smarter about it.

    K-cup is popular.

    The 2.0 machine will do things like espresso, and it needs the smarts to do it,

    If they had set the machine to treat K-cups without the chips just like the old machine did, no one would have cared.

    As more of the featurefull drinks became more popular, more drinks would move over to that.

    10 years out, when people are drinking a LOT more of the drinks that use the new features, your making a LOT more money.

    Oh, wait, that doesn't drive everyone else out of the market. But it sells a lot more machines and a lot more licences to make drinks using the new features.

  12. Re:Well duh..... by pem · · Score: 4, Funny
    in other news, Keurig is not Apple.

    FTFY

  13. The best thing Keurig can do is die by TsuruchiBrian · · Score: 4, Insightful

    I am not even opposed to DRM per se. DRM as a means of piracy prevention is fair (although it's rarely implemented in a good way). DRM as a means of vendor lock in is completely unacceptable. If Keurig somehow remains successful, it reinforces the precedent that dabbling with vendor lock in is ok, as long as you apologize when it becomes a PR problem. What would be better is if a huge company goes bankrupt over it, and scares other companies from trying the same thing.

  14. *Cough* Bullshit by mysidia · · Score: 4, Insightful

    The company says they now plan to license more outside brands, and bring back “My K-Cup” reusable filters.

    If they really believed they were wrong about the things they were actually wrong about, then they would Open-Source the DRM technology and make the interoperability specs public domain, and stop trying to charge licensing dollars.