As far as the political and legal factors are worried, the entire movie industry is affected by the danger of piracy which could possibly produce an unfavorable effect on the total income of the film industry. Having stated that, copyright laws offer defense to the film market in regards to preventing piracy.
While the legal and political environment provides defense to movie makers, globalization and improvement of technological elements have actually increased legal difficulties such as ease of piracy and breaching copyright rights.
It must be noted that movies become part of the entertainment industry while expenditure on any type of home entertainment is basically an optional expenditure which is more or a luxury rather than a requirement. We look at the comparison of the GDP pattern with the pattern in need for motion pictures, we can see that the two are not straight proportional suggesting that any change in GDP development does not necessarily bring about a modification in this specific home entertainment.
As far as the social-cultural factors are concerned, it needs to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of diversity when it comes to opting for a specific segment. Additionally with majority of the audiences being college or university students with an average home earnings of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'higher buying power in households' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment organisation has a lot of capacity for industry gamers.
While technological aspects have contributed towards reducing the expense of entertainment with the introduction of multimedia, reality based entertainment, house theatres, cable 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 movies in your home. Additionally, while innovations have actually contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of keeping and distributing movies.