// MusicMagpie expands rental offering to include tablets, games consoles and MacBooks
// The smartphone rental offering has already attracted 13,500 active subscribers
MusicMagpie has expanded its rental subscription service beyond smartphones and into new product categories such as tablets, games consoles and MacBooks.
The online retailer said its smartphone rental offering has already attracted 13,500 active subscribers since its launch in October 2020.
The success of this offering has prompted an extension into other consumer technology categories.
The company said there was opportunity to expand this flexible and highly competitive rental offering across further consumer tech categories, and it is consistent with growth in the wider subscription economy.
MusicMagpie said its rental subscription generates recurring revenue for the period of the contract, with the ability to achieve further additional revenue from second and third rental periods of that product, and ultimately a potential sale of the product at the end of its rental life.
In the case of a rented smartphone, the group achieves a higher revenue (after approximately 19 months of subscription) and EBITDA contribution (after approximately seven months) over the life of that device compared to an outright sale.
Furthermore, a report by MusicMagpie has found that one in three people say they are more likely than ever before to rent things instead of buying them, citing a range of reasons such as affordability, flexibility, protection of the environment, and being able to access higher quality items.
Over half (53%) also agreed that a redefinition of ownership is underway, whereby consumers don’t place as much emphasis on ownership and, as a result, have more access to a greater number of products and services.
“We are delighted with the progress of our innovative rental subscription service, which is why we’ve expanded it beyond smartphones and into other consumer technology categories,” MusicMagpie chief executive, Steve Oliver said.
“It’s clear from the popularity of this service, as well as the growth of the wider subscription economy, that consumers are increasingly prioritising access, value and sustainability over full ownership.
“There is also a growing awareness of the rising problem of e-waste, which musicMagpie’s circular economy model helps to tackle head-on by refurbishing and reselling consumer technology products, giving them a second or third life which they would not otherwise have had. The beauty of our rental scheme in particular is that it keeps electronic products in the musicMagpie circular ecosystem for longer.
“The amazing consumer value that renting a device from musicMagpie provides, in addition to the environmental benefits that it generates, means that our rental proposition is a true embodiment of our long-standing ‘smart for you, smart for the planet’ ethos, which is why maximising and scaling our rental business will be a major point of focus for us in the coming year.”