As far as the legal and political factors are concerned, the whole movie market is impacted by the danger of piracy which could potentially bring about a negative influence on the total earnings of the movie industry. Having stated that, copyright laws offer security to the movie market in terms of discouraging piracy.
While the legal and political environment offers security to movie makers, globalization and improvement of technological aspects have increased legal obstacles such as ease of piracy and breaking copyright rights.
It needs to be noted that films become part of the entertainment industry while expenditure on any type of home entertainment is basically an optional expense which is more or a high-end rather than a need. We look at the comparison of the GDP pattern with the pattern in demand for films, we can see that the 2 are not straight proportional recommending that any modification in GDP development does not necessarily bring about a change in this particular entertainment.
As far as the social-cultural factors are concerned, it must be noted that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a great deal of diversity when it concerns going with a specific sector. Additionally with bulk of the audiences being college or university students with an average home earnings of $70,000, the buying power of the target audience shows possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their kids's option of entertainment' and 'greater purchasing power in families' due to both parents contributing towards the household income, we can see that the entertainment company has a lot of potential for market players.
While technological aspects have contributed towards lowering the cost of home entertainment with the introduction of multimedia, truth based home entertainment, house 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 appealing than viewing movies in your home. Furthermore, while innovations have contributed towards the hazard of 'piracy' they have likewise contributed towards ease of keeping and distributing movies.