As far as the legal and political aspects are concerned, the whole movie market is affected by the threat of piracy which might possibly cause a negative impact on the overall earnings of the movie industry. Having stated that, copyright laws use security to the film industry in regards to dissuading piracy.
While the legal and political environment offers defense to movie makers, globalization and advancement of technological aspects have actually increased legal obstacles such as ease of piracy and breaching copyright rights.
It should be kept in mind that films become part of the show business while expenditure on any form of entertainment is basically an optional expenditure which is more or a high-end instead of a need. Nevertheless, 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 recommending that any modification in GDP growth does not necessarily produce a modification in this specific home entertainment.
As far as the social-cultural factors are concerned, it ought to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a great deal of diversity when it pertains to going with a particular sector. Additionally with majority of the viewers being college or university students with an average home earnings of $70,000, the acquiring power of the target audience shows possibilities of increasing viewership.
With factors such as 'parents revealing an interest in their kids's option of entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the family income, we can see that the entertainment service has a great deal of potential for market players.
While technological elements have contributed towards reducing the cost of entertainment with the intro of multimedia, reality based entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more attractive than viewing movies at home. Furthermore, while developments have contributed towards the danger of 'piracy' they have actually likewise contributed towards ease of storing and dispersing movies.