As far as the legal and political factors are concerned, the whole film market is impacted by the hazard of piracy which might potentially produce an unfavorable effect on the overall earnings of the movie industry. Having said that, copyright laws offer defense to the movie market in regards to discouraging piracy.
While the legal and political environment provides protection to movie makers, globalization and advancement of technological elements have increased legal challenges such as ease of piracy and breaking copyright rights.
It must be noted that movies are part of the entertainment industry while expense on any type of entertainment is generally an optional expense which is more or a high-end instead of a need. Nevertheless, we take a look at the contrast of the GDP pattern with the trend in demand for films, we can see that the two are not straight proportional suggesting that any modification in GDP development does not always produce a change in this specific entertainment.
As far as the social-cultural elements are worried, it should be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a great deal of diversity when it concerns selecting a specific section. In addition with bulk of the audiences being college or university students with an average home income of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their children's option of home entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the home earnings, we can see that the entertainment business has a great deal of capacity for industry players.
While technological aspects have actually contributed towards lowering the cost of home entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more attractive than seeing motion pictures in your home. Additionally, while innovations have contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of keeping and dispersing movies.