As far as the legal and political elements are concerned, the whole movie industry is affected by the hazard of piracy which might possibly cause an unfavorable impact on the total income of the movie market. Having stated that, copyright laws provide defense to the film industry in regards to preventing piracy.
While the political and legal environment offers security to film makers, globalization and improvement of technological factors have actually increased legal challenges such as ease of piracy and breaching intellectual property rights.
It ought to be noted that movies become part of the entertainment industry while expenditure on any form of home entertainment is essentially an optional expense which is more or a luxury rather than a necessity. However, we take a look at the comparison of the GDP pattern with the trend in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP development does not always bring about a modification in this particular entertainment.
As far as the social-cultural factors are concerned, it must be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which allows a lot of diversity when it concerns choosing a specific segment. In addition with majority of the viewers being college or university students with an average household earnings of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's option of home entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the household income, we can see that the entertainment service has a great deal of potential for industry gamers.
While technological factors have actually contributed towards lowering the expense of home entertainment with the intro of multimedia, truth based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more attractive than watching films at home. Furthermore, while innovations have actually contributed towards the hazard of 'piracy' they have also contributed towards ease of keeping and distributing movies.