With printers, the money isn't made with the device itself, but on the ink refills. To avoid people using third-party supplies which are significantly cheaper, digital rights management (DRM) only allows official refills to work. According to Canadian Business, the same approach is now being used by Keurig coffee makers, which will now only function when a licensed coffee pod is inserted, preventing generic ones from being brewed.
In its fourth-quarter earnings call last November, Green Mountain CEO Brian Kelley said this, of the forthcoming Keurig 2.0 system:
We will be transitioning our lineup of Keurig brewers over fiscal 2014 and early 2015. While were still not willing to discuss specifics about the platform for competitive reasons, we are confident it delivers game-changing performance. To ensure the system delivers on the promise of excellent quality beverages produced simply and consistently every brew every time, we use interactive technology to help us perfectly brew all Keurig brew packs. Because of this the system will not brew unlicensed packs.
In other words, the new Keurig brewers will include software or hardware measuressomething like digital rights managementto prevent you from brewing generic pods in it.
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