As far as the political and legal elements are concerned, the whole movie industry is impacted by the danger of piracy which might possibly bring about a negative effect on the general profits of the movie market. Having said that, copyright laws provide protection to the movie market in terms of discouraging piracy.
While the legal and political environment provides security to movie makers, globalization and advancement of technological aspects have actually increased legal difficulties such as ease of piracy and violating intellectual property rights.
It must be kept in mind that motion pictures are part of the show business while expenditure on any kind of home entertainment is basically an optional cost which is more or a high-end rather than a requirement. We look at the contrast of the GDP pattern with the pattern in demand for motion pictures, we can see that the 2 are not straight proportional suggesting that any change in GDP development does not always bring about a change in this particular entertainment.
As far as the social-cultural aspects are worried, it should be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which enables a great deal of variety when it comes to going with a specific sector. Additionally with bulk of the viewers 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 'parents showing an interest in their children's option of home entertainment' and 'greater buying power in homes' due to both moms and dads contributing towards the household income, we can see that the home entertainment service has a great deal of capacity for market players.
While technological factors have contributed towards lowering the expense of home entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more appealing than watching motion pictures in your home. Additionally, while innovations have contributed towards the hazard of 'piracy' they have actually also contributed towards ease of keeping and dispersing movies.