This is the final mosaic in our digital music delivery chain

Bertelsmann spokesman

Myplay allows music fans to store songs digitally on the internet via a privately labelled music "Locker".

The company invented the digital music Locker in 1999 and now has 6.5 million subscribers.

Bertelsmann, which is thought to have paid about $30m (�21m) for Myplay, is acquiring the company for its e-commerce unit, BeCG.

Transferable technology

BeCG plans to use the technology as a database for its other subscription services, such as its book and video collection.

Myplay.com allows users to store tunes on the internet

"This technology will enable our customers to store and call up music from the internet, mobile telephone or cable network," added BeCG chief executive Andreas Schmidt.

Over the past few months, Bertelsmann has been aggressively expanding its online music business.

"This is the final mosaic in our digital music delivery chain," said a company spokesman.

"Digital music storage has been the missing link."

Other ventures

Bertelsmann's alliance with Napster aims to allow people to trade music over the internet legally - with the permission of music publishers.

MusicNet is a collaboration with AOL TimeWarner, EMI and RealNetworks, the maker of an internet-based music and video player.

The music streaming and download service MusicNet is set to launch later this year.

Each company will own a minority stake in MusicNet and their record labels - EMI Recorded Music, BMG Entertainment and Warner Music Group - will license their music catalogues via the company.

Bertelsmann also owns CDNow, an online music retailer.