As far as the political and legal aspects are concerned, the whole film industry is affected by the danger of piracy which might potentially produce a negative influence on the total profits of the film industry. Having said that, copyright laws use security to the film market in terms of dissuading piracy.
While the political and legal environment uses security to movie makers, globalization and development of technological elements have actually increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It should be kept in mind that films become part of the show business while expense on any kind of entertainment is generally an optional expense which is more or a high-end rather than a necessity. Nevertheless, we take a look at the comparison of the GDP trend with the pattern in demand for films, we can see that the two are not straight proportional suggesting that any change in GDP development does not always bring about a change in this specific home entertainment.
As far as the social-cultural aspects are concerned, it needs to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a great deal of variety when it concerns opting for a particular sector. Additionally with majority of the audiences being college or university students with a typical family income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their kids's option of home entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the household earnings, we can see that the entertainment service has a great deal of capacity for industry players.
While technological elements have actually contributed towards lowering the expense of entertainment with the intro of multimedia, truth based entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than seeing motion pictures at home. In addition, while innovations have contributed towards the risk of 'piracy' they have actually also contributed towards ease of storing and distributing films.