MusicMagpie expands service amid subscription economy boom
Having launched in October 2020, its smartphone service has reportedly attracted around 13,500 active subscribers already
MusicMagpie has announced that it has expanded its rental subscription service to offer new product categories that include tablets, games consoles and MacBooks, as the subscription economy continues to witness a boom across the UK.
Having launched in October 2020, its smartphone service has reportedly attracted around 13,500 active subscribers already, and the group said this success has prompted it to extend into other categories, adding that it “sees potential to expand into other types of consumer technology in future”.
The rental subscription service provides customers with a device for a monthly payment at no up-front cost, and once the rental agreement is over, the customer can upgrade to a more recent device, keep the same device and pay less, or cancel the agreement and return the product.
The group said its “strong progress” within the rental area is part of a wider growth trend in the subscription economy. For example, data from Zuora found that between Q4 2011 and Q4 2020, the Subscription Economy Index, which tracks the volume of business generated by subscription-based products and services, grew by 437%.
In addition, a report by MusicMagpie found that one in three people say they are “more likely than ever before” to rent instead of purchase products, citing affordability, flexibility, protection of the environment, and being able to access higher quality items as some of the reasons.
Meanwhile, 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”.
Steve Oliver, CEO of MusicMagpie, said: “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.
“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.”
He added: “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 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.”
