As far as the legal and political factors are concerned, the entire movie industry is affected by the danger of piracy which might potentially bring about an unfavorable influence on the total profits of the film market. Having stated that, copyright laws use security to the movie market in regards to discouraging piracy.
While the political and legal environment offers defense to film makers, globalization and improvement of technological aspects have actually increased legal difficulties such as ease of piracy and breaching copyright rights.
It ought to be kept in mind that films are part of the entertainment industry while expense on any kind of entertainment is essentially an optional expense which is more or a luxury rather than a need. We look at the contrast of the GDP pattern with the pattern in need for motion pictures, we can see that the 2 are not straight proportional recommending that any change in GDP growth does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural elements are concerned, it ought to be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a lot of diversity when it concerns choosing a particular sector. In addition with majority of the audiences being college or university students with an average household earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their children's option of entertainment' and 'higher buying power in households' due to both moms and dads contributing towards the household income, we can see that the entertainment company has a lot of capacity for market players.
While technological factors have actually contributed towards lowering the cost of entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more appealing than enjoying movies in your home. Additionally, while innovations have actually contributed towards the risk of 'piracy' they have also contributed towards ease of storing and distributing movies.