This case deals with the current decisions Sony has to take to face the new challenges in the Japanese music market. It gives an overview of Sony strategy, its history and the structure of the group, which helps to understand the architecture of the company and the relationships between the different subsidiaries. It emphasizes the fact that Sony Music Entertainment Japan is separate from the main music company of the group, Sony Music Entertainment, which works in all the countries except Japan. Then, it describes more specifically the business of SMEJ. Finally, it confronts this business with the Japanese music environment. It presents the industry, the market and the main trends and challenges within this market. First, it asks the question of the possible international development of the market. Secondly, it shows the development of the digital services. How can Sony Music Entertainment Japan take into consideration these elements in order to develop?