As far as the political and legal aspects are concerned, the entire film market is affected by the risk of piracy which might possibly cause a negative impact on the general profits of the film industry. Having said that, copyright laws offer security to the movie market in regards to preventing piracy.
While the legal and political environment offers defense to movie makers, globalization and improvement of technological elements have increased legal obstacles such as ease of piracy and violating intellectual property rights.
It ought to be kept in mind that movies become part of the entertainment industry while expense on any form of entertainment is generally an optional expenditure which is more or a high-end instead of a requirement. We look at the contrast of the GDP trend with the pattern in demand for movies, we can see that the 2 are not straight proportional recommending that any change in GDP growth does not necessarily bring about a modification in this particular entertainment.
As far as the social-cultural elements are worried, it must be kept in mind that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a great deal of diversity when it concerns choosing a specific segment. Furthermore with bulk of the viewers being college or university students with a typical family income of $70,000, the buying power of the target market shows possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's option of entertainment' and 'greater purchasing power in households' due to both moms and dads contributing towards the family income, we can see that the entertainment company has a lot of potential for industry players.
While technological aspects have contributed towards reducing the cost of entertainment with the intro 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 seeing films in the house. In addition, while innovations have contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of saving and dispersing movies.