As far as the political and legal factors are concerned, the entire film market is impacted by the hazard of piracy which might potentially cause an unfavorable effect on the general income of the film industry. Having said that, copyright laws offer protection to the film industry in regards to preventing piracy.
While the legal and political environment provides defense to movie makers, globalization and improvement of technological factors have increased legal difficulties such as ease of piracy and breaching intellectual property rights.
It should be kept in mind that films belong to the show business while expense on any type of entertainment is generally an optional expenditure which is more or a high-end instead of a need. Nevertheless, we look at the contrast 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 entertainment.
As far as the social-cultural elements are worried, it should be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which allows a lot of variety when it pertains to going with a particular sector. Furthermore with bulk of the audiences being college or university students with a typical household income of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their kids's choice of home entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the family income, we can see that the home entertainment organisation has a lot of capacity for industry players.
While technological factors have contributed towards reducing the cost of entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for customers in order to make it more appealing than viewing motion pictures in the house. Additionally, while innovations have actually contributed towards the hazard of 'piracy' they have actually likewise contributed towards ease of keeping and dispersing movies.