As far as the legal and political factors are concerned, the whole film industry is impacted by the danger of piracy which could possibly bring about a negative influence on the general revenue of the movie market. Having stated that, copyright laws offer security to the film industry in terms of dissuading piracy.
While the political and legal environment provides protection to film makers, globalization and advancement of technological aspects have actually increased legal obstacles such as ease of piracy and violating copyright rights.
It should be kept in mind that motion pictures are part of the show business while expense on any form of entertainment is essentially an optional expense which is more or a luxury instead of a need. Nevertheless, we take a look at the contrast of the GDP pattern with the trend in demand for films, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily cause a change in this particular home entertainment.
As far as the social-cultural aspects are concerned, it ought to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a lot of diversity when it concerns selecting a particular segment. Furthermore with majority of the audiences being college or university students with a typical home income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'parents revealing an interest in their kids's option of home entertainment' and 'higher purchasing power in households' due to both moms and dads contributing towards the family income, we can see that the home entertainment organisation has a great deal of capacity for industry players.
While technological factors have actually contributed towards lowering the cost of home entertainment with the introduction of multimedia, reality based home entertainment, house 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 attractive than watching movies in your home. Furthermore, while innovations have contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of keeping and distributing films.