As far as the legal and political factors are concerned, the entire movie market is impacted by the danger of piracy which could potentially cause an unfavorable impact on the total earnings of the film market. Having said that, copyright laws offer defense to the film market in terms of dissuading piracy.
While the legal and political environment offers protection to film makers, globalization and improvement of technological factors have actually increased legal challenges such as ease of piracy and violating copyright rights.
It should be kept in mind that films become part of the entertainment industry while expenditure on any type of home entertainment is basically an optional expenditure which is more or a luxury rather than a requirement. We look at the comparison of the GDP pattern with the trend in demand for motion pictures, we can see that the 2 are not directly proportional suggesting that any change in GDP growth does not necessarily bring about a change in this particular home entertainment.
As far as the social-cultural factors are worried, it needs to be noted that the 70% of IMAX audiences are in between the ages of 19 and 56 which enables a great deal of diversity when it pertains to choosing a specific sector. In addition with bulk of the viewers being college or university students with an average family income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their kids's option of entertainment' and 'higher buying power in families' due to both moms and dads contributing towards the household earnings, we can see that the entertainment business has a lot of capacity for industry gamers.
While technological elements have actually contributed towards decreasing the expense 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 consumers in order to make it more attractive than viewing motion pictures in the house. Furthermore, while developments have actually contributed towards the risk of 'piracy' they have likewise contributed towards ease of storing and distributing movies.