As far as the legal and political aspects are worried, the entire movie market is affected by the danger of piracy which might possibly cause a negative effect on the overall revenue of the film industry. Having said that, copyright laws use protection to the movie market in terms of dissuading piracy.
While the political and legal environment uses defense to movie makers, globalization and improvement of technological elements have actually increased legal difficulties such as ease of piracy and violating intellectual property rights.
It must be kept in mind that films belong to the entertainment industry while expenditure on any form of entertainment is generally an optional expense which is more or a luxury instead of a necessity. We look at the comparison of the GDP trend with the trend in demand for movies, we can see that the 2 are not straight proportional recommending that any change in GDP growth does not always bring about a modification in this particular entertainment.
As far as the social-cultural aspects are concerned, it must be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which permits a lot of diversity when it comes to choosing a specific section. In addition with majority of the audiences being college or university students with a typical household earnings of $70,000, the acquiring power of the target market reveals possibilities of increasing viewership.
With elements such as 'moms and dads revealing an interest in their children's choice of entertainment' and 'higher purchasing power in families' due to both parents contributing towards the home income, we can see that the home entertainment business has a great deal of capacity for industry gamers.
While technological factors have contributed towards lowering the cost of entertainment with the intro of multimedia, reality based entertainment, home theatres, cable television networks, the pressure on theatres has increased in regard to making the theatre experience richer for consumers in order to make it more appealing than watching movies at home. Additionally, while developments have contributed towards the threat of 'piracy' they have actually likewise contributed towards ease of storing and distributing movies.