As far as the political and legal aspects are worried, the entire film market is affected by the risk of piracy which might possibly cause an unfavorable influence on the general profits of the film market. Having said that, copyright laws provide defense to the movie market in regards to discouraging piracy.
While the legal and political environment uses protection to movie makers, globalization and improvement of technological elements have actually increased legal obstacles such as ease of piracy and breaking copyright rights.
It ought to be noted that films are part of the entertainment industry while expenditure on any form of entertainment is generally an optional cost which is more or a high-end instead of a necessity. We look at the comparison of the GDP pattern with the pattern in demand for movies, we can see that the two are not directly proportional recommending that any change in GDP growth does not necessarily bring about a change in this specific home entertainment.
As far as the social-cultural factors are concerned, it ought to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which enables a great deal of variety when it pertains to selecting a particular section. In addition with majority of the audiences being college or university students with an average household earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With factors such as 'parents showing an interest in their kids's choice of entertainment' and 'higher buying power in homes' due to both moms and dads contributing towards the home earnings, we can see that the entertainment business has a lot of capacity for market players.
While technological aspects have contributed towards decreasing the expense of entertainment with the introduction of multimedia, truth based entertainment, house theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more appealing than enjoying motion pictures in the house. In addition, while innovations have actually contributed towards the hazard of 'piracy' they have actually also contributed towards ease of storing and distributing films.