As far as the legal and political factors are worried, the entire movie industry is impacted by the threat of piracy which might possibly bring about an unfavorable influence on the total income of the film industry. Having stated that, copyright laws provide defense to the film industry in regards to preventing piracy.
While the legal and political environment provides defense to movie makers, globalization and advancement of technological factors have actually increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It ought to be noted that motion pictures belong to the show business while expenditure on any kind of home entertainment is generally an optional expenditure which is more or a luxury rather than a requirement. We look at the contrast of the GDP pattern with the trend in demand for motion pictures, we can see that the 2 are not directly proportional suggesting that any modification in GDP growth does not always bring about a change in this particular entertainment.
As far as the social-cultural aspects are worried, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of variety when it pertains to choosing a specific section. Additionally with bulk of the viewers being college or university students with an average family earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'higher buying power in households' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment business has a lot of potential for industry gamers.
While technological elements have contributed towards lowering the cost of entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than enjoying movies in the house. Furthermore, while innovations have contributed towards the danger of 'piracy' they have likewise contributed towards ease of storing and dispersing films.