As far as the legal and political elements are worried, the entire film market is affected by the risk of piracy which might potentially bring about a negative influence on the general profits of the film market. Having stated that, copyright laws provide defense to the movie market in regards to discouraging piracy.
While the political and legal environment provides protection to film makers, globalization and improvement of technological elements have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It needs to be kept in mind that films become part of the entertainment industry while expense on any type of home entertainment is generally an optional expense which is more or a high-end rather than a necessity. Nevertheless, we take a look at the comparison of the GDP trend 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 necessarily produce a modification in this particular entertainment.
As far as the social-cultural aspects are concerned, it needs to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a lot of diversity when it concerns going with a particular sector. Furthermore 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 shows possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their children's choice of home entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the home earnings, we can see that the home entertainment company has a great deal of potential for industry gamers.
While technological aspects have actually contributed towards reducing the expense of home entertainment with the introduction of multimedia, truth based home entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more appealing than viewing movies in your home. Additionally, while innovations have actually contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and distributing movies.