As far as the political and legal elements are worried, the whole movie industry is affected by the risk of piracy which might possibly produce a negative effect on the general income of the film industry. Having stated that, copyright laws offer defense to the movie industry in terms of dissuading piracy.
While the political and legal environment provides protection to film makers, globalization and advancement of technological factors have actually increased legal obstacles such as ease of piracy and breaching intellectual property rights.
It ought to be noted that motion pictures are part of the show business while expense on any type of home entertainment is basically an optional cost which is more or a luxury instead of a need. However, we look at the comparison of the GDP trend with the trend in demand for motion pictures, we can see that the two are not straight proportional suggesting that any modification in GDP development does not necessarily bring about a modification in this specific entertainment.
As far as the social-cultural factors are worried, it should be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of variety when it comes to selecting a specific sector. Furthermore with majority of the viewers being college or university students with an average family income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's option of home entertainment' and 'higher buying power in homes' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment organisation has a great deal of potential for market players.
While technological factors have actually contributed towards lowering the cost of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable 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 watching movies in the house. In addition, while developments have actually contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of keeping and dispersing films.