As far as the political and legal elements are concerned, the whole film industry is affected by the hazard of piracy which could possibly bring about an unfavorable effect on the overall revenue of the film industry. Having stated that, copyright laws use protection to the movie market in regards to dissuading piracy.
While the legal and political environment offers protection to movie makers, globalization and improvement of technological aspects have actually increased legal difficulties such as ease of piracy and violating intellectual property rights.
It should be noted that motion pictures become part of the show business while expenditure on any type of home entertainment is essentially an optional cost which is more or a luxury instead of a necessity. We look at the contrast of the GDP pattern with the pattern in demand for films, we can see that the two are not directly proportional recommending that any modification in GDP growth does not necessarily bring about a change in this specific entertainment.
As far as the social-cultural factors are concerned, it must be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of diversity when it comes to opting for a particular segment. Additionally with majority of the viewers being college or university students with a typical family earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's choice of entertainment' and 'greater purchasing power in homes' due to both moms and dads contributing towards the household earnings, we can see that the home entertainment business has a lot of potential for industry gamers.
While technological elements have actually contributed towards reducing the expense of entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than enjoying movies in your home. Furthermore, while developments have actually contributed towards the hazard of 'piracy' they have likewise contributed towards ease of storing and distributing films.