As far as the legal and political aspects are worried, the whole film industry is impacted by the threat of piracy which might potentially produce an unfavorable influence on the overall profits of the movie industry. Having stated that, copyright laws provide protection to the film market in terms of preventing piracy.
While the political and legal environment provides protection to movie makers, globalization and advancement of technological aspects have increased legal obstacles such as ease of piracy and violating copyright rights.
It should be noted that movies are part of the entertainment industry while expense on any type of home entertainment is generally an optional expenditure which is more or a luxury rather than a necessity. We look at the comparison of the GDP pattern with the trend in need for films, we can see that the 2 are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this particular entertainment.
As far as the social-cultural factors are worried, it needs to be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of diversity when it comes to going with a particular segment. In addition with bulk of the viewers being college or university students with an average household income of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's option of home entertainment' and 'higher buying power in households' due to both moms and dads contributing towards the household earnings, we can see that the entertainment company has a great deal of capacity for industry gamers.
While technological elements have contributed towards decreasing the expense of home entertainment with the introduction of multimedia, reality based entertainment, home theatres, cable television 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 in your home. Furthermore, while innovations have contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of storing and dispersing movies.