As far as the legal and political factors are concerned, the entire movie market is affected by the danger of piracy which might potentially bring about a negative effect on the total income of the film industry. Having said that, copyright laws use protection to the film industry in terms of discouraging piracy.
While the political and legal environment offers defense to film makers, globalization and improvement of technological aspects have increased legal challenges such as ease of piracy and breaking intellectual property rights.
It needs to be kept in mind that films are part of the show business while expenditure on any kind of home entertainment is generally an optional cost which is more or a high-end instead of a necessity. We look at the contrast of the GDP trend with the trend in demand for motion pictures, we can see that the 2 are not directly proportional recommending that any modification in GDP growth does not always bring about a change in this particular home entertainment.
As far as the social-cultural aspects are concerned, it should 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 selecting a specific segment. Furthermore with majority of the viewers being college or university students with an average family earnings of $70,000, the buying power of the target audience reveals possibilities of increasing viewership.
With factors such as 'moms and dads showing an interest in their kids's choice of entertainment' and 'greater purchasing power in families' due to both moms and dads contributing towards the home income, we can see that the entertainment company has a great deal of capacity for industry gamers.
While technological aspects have contributed towards reducing the expense of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for consumers in order to make it more attractive than seeing motion pictures in your home. Furthermore, while developments have actually contributed towards the hazard of 'piracy' they have actually also contributed towards ease of storing and dispersing films.