As far as the legal and political elements are concerned, the entire movie industry is impacted by the hazard of piracy which could potentially produce a negative influence on the general revenue of the film industry. Having stated that, copyright laws provide security to the movie industry in terms of preventing piracy.
While the political and legal environment uses protection to film makers, globalization and improvement of technological elements have increased legal difficulties such as ease of piracy and breaching copyright rights.
It ought to be kept in mind that movies belong to the entertainment industry while expense on any form of entertainment is generally an optional expenditure which is more or a luxury rather than a necessity. We look at the contrast of the GDP trend with the trend in demand for movies, we can see that the 2 are not directly proportional suggesting that any change in GDP development does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural factors are worried, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a great deal of variety when it pertains to going with a particular section. In addition with bulk of the viewers being college or university students with an average home earnings of $70,000, the purchasing power of the target audience reveals possibilities of increasing viewership.
With elements such as 'parents revealing an interest in their children'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 service has a lot of capacity for industry players.
While technological aspects have actually contributed towards reducing the expense of entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than watching motion pictures in the house. Additionally, while developments have contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of storing and dispersing films.