As far as the legal and political factors are concerned, the whole movie market is affected by the threat of piracy which might potentially bring about a negative influence on the total earnings of the movie industry. Having stated that, copyright laws use protection to the film industry in regards to discouraging piracy.
While the political and legal environment uses protection to movie makers, globalization and development of technological elements have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It ought to be kept in mind that films become part of the entertainment industry while expenditure on any type of home entertainment is basically an optional expense which is more or a luxury instead of a necessity. We look at the comparison of the GDP trend with the pattern in need for films, we can see that the two are not straight 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 elements are concerned, it must be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which enables a great deal of variety when it pertains to choosing a particular segment. In addition with majority of the viewers being college or university students with an average family earnings of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With aspects such as 'parents showing an interest in their children's choice of entertainment' and 'higher purchasing power in homes' due to both parents contributing towards the family earnings, we can see that the home entertainment service has a great deal of capacity for industry players.
While technological aspects have actually 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 actually 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 developments have contributed towards the threat of 'piracy' they have likewise contributed towards ease of keeping and dispersing movies.