As far as the political and legal factors are concerned, the whole movie market is impacted by the risk of piracy which might potentially bring about a negative influence on the total income of the movie market. Having stated that, copyright laws use security to the movie industry in regards to preventing piracy.
While the political and legal environment uses defense to movie makers, globalization and development of technological factors have actually increased legal obstacles such as ease of piracy and breaching copyright rights.
It ought to be noted that films become part of the entertainment industry while expenditure on any type of home entertainment is essentially an optional expense which is more or a luxury rather than a necessity. We look at the contrast of the GDP pattern with the pattern in need for films, we can see that the 2 are not straight proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural elements are concerned, it must be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a great deal of diversity when it pertains to selecting a particular section. Additionally with bulk of the audiences being college or university students with an average home earnings of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their kids's choice of entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the household income, we can see that the home entertainment service has a great deal of capacity for industry players.
While technological factors have contributed towards lowering the expense of home entertainment with the intro of multimedia, truth based home entertainment, home theatres, cable networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than seeing motion pictures at home. In addition, while innovations have contributed towards the risk of 'piracy' they have actually also contributed towards ease of keeping and distributing films.