As far as the political and legal factors are worried, the entire movie market is impacted by the danger of piracy which could possibly bring about a negative impact on the overall profits of the movie market. Having said that, copyright laws provide protection to the film industry in regards to dissuading piracy.
While the political and legal environment uses defense to film makers, globalization and improvement of technological elements have increased legal challenges such as ease of piracy and violating intellectual property rights.
It must be kept in mind that films become part of the show business while expense on any form of home entertainment is essentially an optional expense which is more or a high-end instead of a need. 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 straight proportional recommending that any modification in GDP growth does not necessarily cause a change in this specific entertainment.
As far as the social-cultural factors are worried, it ought to be noted 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 choosing a specific section. Additionally with majority of the viewers being college or university students with an average family earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their kids's choice of home entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the home income, we can see that the entertainment business has a lot of potential for market gamers.
While technological factors have actually contributed towards decreasing the expense of home entertainment with the introduction of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than viewing films in your home. Additionally, while developments have actually contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of keeping and dispersing movies.