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MusicMagpie expands rental subscription service into new categories
7th Feb 2022 09:25
(Sharecast News) - Retailer MusicMagpie said on Monday that it has expanded its rental subscription service beyond smartphones and into new product categories.
MusicMagpie, which stated its rental offering had already attracted 13,500 active subscribers since launching October 2020, will now offer other consumer technology items such as games consoles, tablets and MacBooks.
The AIM-listed firm said monthly rental fees will start at £11.99 for a console, £12.99 for an iPad, and £19.99 for a MacBook.
MusicMagpie added that in addition to the benefit to consumers, the 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, and ultimately a potential sale of the product at the end of its rental life.
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.
"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."
As of 0925 GMT, MusicMagpie shares were down 0.31% at 163.0p.
MusicMagpie, which stated its rental offering had already attracted 13,500 active subscribers since launching October 2020, will now offer other consumer technology items such as games consoles, tablets and MacBooks.
The AIM-listed firm said monthly rental fees will start at £11.99 for a console, £12.99 for an iPad, and £19.99 for a MacBook.
MusicMagpie added that in addition to the benefit to consumers, the 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, and ultimately a potential sale of the product at the end of its rental life.
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.
"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."
As of 0925 GMT, MusicMagpie shares were down 0.31% at 163.0p.